Pandian vs. The State Tax Officer (St)
Held
The Court held that Notification Nos. 09/2023-Central Tax and 56/2023-Central Tax are vitiated and illegal. The reasoning was that these notifications diminish the limitation period available to authorities, which was extended by the Supreme Court's order under Article 142 of the Constitution, thus contradicting the object of Section 168A of the CGST Act. The notifications were based on an erroneous assumption of the available limitation and a misconception of the Supreme Court's order, leading to arbitrariness. Furthermore, Notification No. 56/2023 was issued before the GST Council's recommendations and relied on GIC recommendations, which are not substitutes for the GST Council, making it illegal. The Court quashed the impugned assessment order and remitted the case back to the respondents for a fresh order on merits, to be decided in line with the outcome of a pending Supreme Court case. The attachment of the petitioner's bank account and property was directed to be lifted forthwith.
Facts
The petitioner, Pandian, filed a writ petition challenging an assessment order dated 28.02.2024 passed by the Deputy State Tax Officer II for the assessment year 2019-2020. The petitioner also challenged Notifications No. 09/2023-Central Tax dated 31.03.2023 and No. 56/2023-Central Tax dated 28.12.2023, and G.O.Ms.No.41 dated 05.04.2023. The petitioner had not responded to pre-assessment notices. The High Court noted that the writ petition was filed long after the assessment order was passed. The court also observed that the petitioner's bank account and property had been attached.
Key Issues
1. Whether Notification Nos. 09/2023-Central Tax and 56/2023-Central Tax, issued under Section 168A of the CGST Act, are vitiated and illegal. The petitioner argued that these notifications, by curtailing the limitation period, diminish the rights available to authorities based on the Supreme Court's order under Article 142, making them arbitrary. The petitioner contended that Notification No. 56/2023 was issued prior to the GST Council's recommendations and on the basis of recommendations from the GIC, not the GST Council, rendering it illegal. The revenue did not record specific arguments on this point in the judgment. 2. Whether the impugned assessment order, which was passed after the period challenged by the notifications, is sustainable. The petitioner argued for its quashing. The revenue did not record specific arguments on this point in the judgment.
Sections Cited
Section 168A, Section 73
AI-generated summary — verify with the full judgment below
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 25.11.2025 CORAM THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN and W.M.P(MD)Nos.26629 & 26630 of 2025 Pandian ... Petitioner Vs. 1.The Deputy State Tax Officer II, Bodinayakanur, Theni. 2.The State represented by The Secretary, Commercial Taxes & Registration (B1) Department, Fort St.George, Chennai – 600 009. 3.Union of India, Secretary to the Government of India, Ministry of Finance (MOF), Raj Path Marg, 'E' Block, Central Secretariat, New Delhi – 110 011. ... Respondents 1/7 https://www.mhc.tn.gov.in/judis Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorari to call for the records of the impugned proceedings of the third respondent Notification No. 09/2023-Central Tax dated 31.03.2023, and that of proceedings of the second respondent in G.O.Ms.No.41 dated 05.04.2023 and that of the proceedings of the 3rd respondent Notification No.56/2023-Central Tax dated 28.12.2023 and that of the assessment order passed by the 1st respondent in ZD33022417555
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