HC upholds GST notifications extending notice deadlines
Hyderabad, Jan 7, 2025
The Telangana high court has upheld the notifications issued by GST authorities, extending the timeframe for issuing show-cause notices related to tax recovery and input tax credit matters for the financial year 2019-20.
A division bench, comprising Justices Sujoy Paul and G. Radha Rani, issued this ruling on Monday, addressing over 300 petitions from various business entities in the state.
The petitioners challenged the notifications, arguing that under the GST Act, show-cause notices must be issued within three years from the due date for filing the annual return. They contended that the notices, set for May 31, 2024, exceeded this timeframe, and that extensions should only be granted in cases of force majeure, not due to administrative difficulties.
"The time limit can be extended only under force majeure conditions (acts of God or greater force), not because of administrative challenges," the petitioners argued.
"The relaxations and extensions granted during Covid-19 are no longer applicable, as the deadline for completing or complying with any action was extended only until June 30, 2021," they said.
Senior counsel Dominic Fernandes, representing the Central Board of Indirect Taxes, argued that the petitioners had benefited from extensions for tax payments during the same period.
After hearing arguments from both parties, the high court decided not to interfere with the notifications and show-cause notices. The court dismissed the petitions but preserved the petitioners' right to file statutory appeals against the notices.
Furthermore, the court directed the appellate authorities to consider these appeals on their merits, ensuring they are not dismissed solely on the grounds of limitation.
[The Times of India]