M/S R.K.Motors vs. Union Of INDIA

Facts

The petitioner, M/s R.k.motors, filed a writ petition challenging an Order-in-Original dated 25.04.2024, which confirmed a demand of Rs.11,84,123/- under Section 73 of the CGST/RGST Act, along with interest and penalty. The petitioner also challenged the vires of Notification No.56/2023-Central Tax dated 28.12.2023, which extended time limits under Section 73(10). The petitioner argued the order was passed beyond the prescribed limitation period, that the demand for IGST exceeded the show cause notice, and that the adjudicating authority confirmed the demand despite the petitioner's submissions and partial reversal of ITC. The respondents objected to the maintainability of the writ petition, citing the availability of an alternative remedy under Section 107 of the CGST Act.

Held

The Court did not entertain the writ petition on merits. Regarding the challenge to the impugned order dated 25.04.2024, the Court found that the petitioner had bypassed the statutory remedy of appeal provided under Section 107 of the CGST Act. The Court noted that Section 107 provides a remedy by way of an appeal to the Appellate Authority against any decision or order passed by an adjudicating authority. Therefore, the Court was not inclined to entertain the writ petition on this ground. Concerning the challenge to the vires of Notification No. 56/2023 dated 28.12.2023, the Court observed that this issue was sub judice before the Hon'ble Supreme Court of India in SLP No. 4240/2025 and, therefore, the High Court refrained from adjudicating upon it. The Court disposed of the writ petition with liberty to the petitioner to file an appeal before the appropriate authority within six weeks, stating that all issues and contentions raised were left open to be decided by the appellate authority.

Key Issues

1. Whether the Order-in-Original dated 25.04.2024, confirming a demand of Rs.11,84,123/- under Section 73 of the CGST/RGST Act, was passed beyond the prescribed limitation period under Section 73(10) of the CGST/RGST Act, considering the due date for furnishing the annual return for FY 2018-19 was 31.12.2020, and the period for passing the order expired on 31.12.2023. 2. Whether the Order-in-Original exceeded the scope of the show cause notice, particularly concerning the demand of tax and penalty under IGST. 3. Whether Notification No.56/2023-Central Tax dated 28.12.2023, extending the time limit under Section 73(10) of the CGST Act/RGST Act, is ultra vires. Petitioner's arguments: The impugned order was passed beyond the limitation period. The demand for IGST was not proposed in the initial show cause notice but was confirmed later, exceeding the notice's scope. The petitioner had deposited/reversed ITC and interest and provided explanations. The adjudicating authority confirmed the demand on grounds not specifically sought from the petitioner. The petitioner also challenged the vires of the notification extending the time limit. Respondents' arguments: The writ petition is not maintainable as the petitioner has not availed the alternative remedy of appeal under Section 107 of the CGST Act.