Tvl Voylla Fashions Private Limited vs. The Assistant Commissioner (St) (Fac)

Held

The Court held that Notification No. 09/2023-Central Tax dated 31.03.2023 and Notification No. 56/2023-Central Tax dated 28.12.2023 are vitiated and illegal. This decision was based on a prior common order of the same High Court dated 12.06.2025 in a batch of writ petitions (W.P.Nos.17184 of 2024, etc.). The Court reiterated the findings from that order, specifically paragraphs 9 to 12, which stated that the impugned notifications were illegal for several reasons: they diminished the limitation period available due to the Supreme Court's order under Article 142, contrary to the object of Section 168A of the CGST Act; they proceeded on erroneous assumptions and misconceptions regarding the limitation period and the Supreme Court's order, rendering them arbitrary; they extinguished vested rights by diminishing the limitation period; they were issued without examining relevant materials; and Notification No. 56/2023 was issued prior to the GST Council's recommendations and on the basis of recommendations from the GIC, which cannot substitute the GST Council. Consequently, all impugned orders were liable to be set aside. The Court directed that the consequential order dated 28.08.2024 be treated as a show cause notice, and the petitioners should submit their objections within 8 weeks, after which the authorities would pass fresh orders after affording a hearing.

Facts

The petitioner, Tvl Voylla Fashions Private Limited, filed a writ petition challenging Notification No. 09/2023-Central Tax dated 31.03.2023 and Notification No. 56/2023-Central Tax dated 28.12.2023, issued by the Union of India (3rd respondent). They also challenged the consequential assessment order dated 28.08.2024 passed by the Assistant Commissioner (ST) (FAC) (1st respondent) for the assessment year 2019-20. The petitioner contended that these notifications were ultra vires Section 168A of the CGST Act, 2017, acted retrospectively, and violated Articles 14, 246A, and 265 of the Constitution of India. The respondents were the Assistant Commissioner (ST), the State of Tamil Nadu, and the Union of India.

Key Issues

1. Whether Notification No. 09/2023-Central Tax dated 31.03.2023 and Notification No. 56/2023-Central Tax dated 28.12.2023 are vitiated and illegal, being ultra vires Section 168A of the CGST Act, 2017, and violative of Articles 14, 246A, and 265 of the Constitution of India? Petitioner's arguments: The petitioner argued that the impugned notifications were ultra vires Section 168A of the CGST Act, 2017, could not act retrospectively, and were violative of Articles 14, 246A, and 265 of the Constitution of India. They contended that the notifications diminished or curtailed the limitation period otherwise available due to the Supreme Court's order under Article 142, were based on erroneous assumptions about the available limitation and the scope of the Supreme Court's order, and resulted in extinguishing vested rights by diminishing the limitation period, thus suffering from arbitrariness. They also argued that the notifications were issued without examining relevant materials and that Notification No. 56/2023 was issued prior to the GST Council's recommendations. Respondents' arguments: The respondents did not record any specific arguments in the judgment.