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2024 Supreme(All) 945

IN THE HIGH COURT OF ALLAHABAD
HON'BLE SAUMITRA DAYAL SINGH, HON'BLE DONADI RAMESH, JJ.
M/s Graziano Trasmissioni – Appellant
Versus
Goods And Services Tax And 5 Others – Respondents
Writ Tax No.1256 of 2023, WRIT TAX No. - 132 of 2024, WRIT TAX No.134 of 2024, WRIT TAX No. - 1393 of 2023, WRIT TAX No. - 1450 of 2023, WRIT TAX No. - 177 of 2024, WRIT TAX No. - 224 of 2024, WRIT TAX No. - 375 of 2024, WRIT TAX No. - 456 of 2024, WRIT TAX No. - 46 of 2024, WRIT TAX No. - 460 of 2024, WRIT TAX No. - 80 of 2024, WRIT TAX No. - 825 of 2024, WRIT TAX No. - 522 of 2024, WRIT TAX No. - 548 of 2024, WRIT TAX No. - 597 of 2024, WRIT TAX No. - 841 of 2024, WRIT TAX No. - 897 of 2024, WRIT TAX No. - 902 of 2024
Decided on : 31-05-2024

Advocates:
Advocate Appeared:
For the Petitioner: Vinayak Mithal, Arjit Gupta, Manish Gupta, Anurag Mishra, Pragya Pandey, Aditya Pandey , Suyash Agarwal, Nitin Kumar Kesarwani, Suyash Agarwal, Atul Gupta
For the Respondent: A.S.G.I., C.S.C., Gaurav Mahajan, Naveen Chandra Gupta, A.S.G.I., Amit Mahajan, C.S.C., Gopal Verma, A.S.G.I., Krishna Agarawal, S.S.C., A.S.G.I., C.S.C., Krishna Ji Shukla

The court upheld the validity of notifications extending time limits for adjudication orders under GST, affirming that the COVID-19 pandemic constituted a force majeure circumstance justifying such extensions.

Headnote:(A) Central Goods and Services Tax Act, 2017 - Section 168A - Uttar Pradesh Goods and Services Tax Act, 2017 - Notification No. 09/2023-Central Tax and Notification No. 515 of 2023 - Challenge to notifications extending time limits for adjudication orders for FY 2017-18 - Court held that the notifications were validly issued under Section 168A, as the COVID-19 pandemic constituted a force majeure circumstance affecting compliance - The extension of time was not arbitrary and was based on the recommendations of the GST Council - The legislative intent was to provide relief in light of the pandemic's impact on tax administration and compliance. (Paras 2, 10, 12, 138)

(B) Legislative Power - Delegated legislation - The power under Section 168A is conditional and must be exercised in special circumstances - The court emphasized that the existence of a force majeure circumstance is essential for the exercise of this power, which was satisfied in this case due to the pandemic. (Paras 97, 100, 138)

Facts of the case:
The petitioners challenged the validity of notifications extending the time limit for adjudication orders under the GST regime for FY 2017-18, arguing that the extensions were not justified as the pandemic had ended.

Findings of Court:
The court found that the notifications were validly issued under Section 168A, as the COVID-19 pandemic constituted a force majeure circumstance affecting compliance.

Issues: The main issues were whether the notifications were validly issued under Section 168A and whether the pandemic constituted a force majeure circumstance justifying the extensions.

Ratio Decidendi: The court ruled that the notifications were valid as they were issued in response to the extraordinary circumstances created by the pandemic, which impaired the functioning of tax authorities.

Result: Writ petitions dismissed.

JUDGMENT :

Hon'ble Saumitra Dayal Singh, J. Hon'ble Donadi Ramesh,J.

1. Heard Sri Rakesh Ranjan Agarwal learned Senior Counsel assisted by Sri Suyash Agarwal, Sri Divyanshu Agarwal and Sri Vinayak Mittal, Sri Shambhu Chopra learned Senior Counsel assisted by Sri Rajnish Tripathi, Sri Praveen Kumar, Sri Nishant Mishra, Sri Atul Gupta, Sri Abhinav Mehrotra, Sri Venkat Prasad Pasupaleti (through video conferencing) and Sri Ayush Mishra, learned counsel for the petitioner, Sri S.P. Singh, learned ASGI assisted by Sri N.C. Gupta and Sri Gopal Verma, Sri Anant Tiwari, Sri O.P. Mishra, Sri K.J. Shukla, Sri Chandra Prakash Yadav and Sri Arvind Kumar Goswami learned counsel for the Union of India and Goods & Service Tax Council, Sri Gaurav Mahajan learned Senior Standing Counsel, Sri Amit Mahajan learned Senior Standing Counsel, Sri Krishna Agarwal learned Senior Standing Counsel and Sri Parv Agarwal learned Senior Standing Counsel for the Central Board of Indirect Taxes and Customs, Sri Nimai Das, learned Additional Chief Standing Counsel and Sri Ankur Agarwal learned Standing Counsel for the State-GST authorities.

2. Challenge has arisen to Notification No. 09/2023-Central Tax (CGST) dated 31.3.2023 issued by the Government of India and Notification No. 515/XI-2-23-9 (47)/17-T.C.215-U.P.Act-1-2017-Order-(273)-2023 dated 24.4.2023 issued by the State Government under Section 168A of the Central Goods and Service Tax Act, 2017 (hereinafter referred to as ‘the Central Act’) and the Uttar Pradesh Goods and Service Tax Act, 2017 (hereinafter referred to as ‘the State Act’) respectively, insofar those Notifications seek to extend the time granted to the Adjudicating Authorities to pass adjudication orders with reference to proceedings for the F.Y. 2017-18. That challenge is involved in the following writ petitions:

Sl. No.	Writ Tax Number	Party Name	Financial Year
1.	132 of 2024	Ms MJ Corporation Vs. Goods And Service Tax Council And 4 Others	2017-18
2.	134 of 2024	Ms Rki India Limited And Another Vs. Union Of India And 3 Others	2017-18
3.	1393 of 2023	U.P. Ceramics Potteries Pvt Ltd Vs. Good and Service Tax and 5 Others	2017-18
4.	1450 of 2023	M/s Savi Interiors and Another Vs. Union of India and 2 Others	2017-18
5.	177 of 2024	Devendra Pratap Singh Vs. Goods And Service Tax And 4 Others	2017-18
6.	224 of 2024	Atul Tyre House Vs. Goods And Service Tax Council And 4 Others	2017-18
7.	375 of 2024	M/D New Manish Surgical K 61/115 Saptsagar Vs. Goods And Service Tax Council Through The Secretary Gst Council And 4 Others	2017-18
8.	456 of 2024	M/S Haji Nabi Bakash Mohd Saleem Vs. Goods And Service Tax Council And 4 Others	2017-18
9.	46 of 2024	Civil Lines E. K. Road Meerut, Meerut Uttar Pradesh 250001 Through Its Finance Controller Mr Ramesh Chandra Vs. Goods And Service Tax Council And 4 Others	2017-18
10.	460 of 2024	M/S Vinod Kumar Rai Vs. State Of Up And 2 Others	2017-18
11.	80 of 2024	Ms Lg Electronic India Pvt Ltd Vs. State Of Up And 2 Others	2017-18
12.	825 of 2024	M/S Yuvaan Enterprises Vs. Goods And Service Tax Council And 4 Others	2017-18
13.	522 of 2024	M/S Tara Products And Services Private Limited Vs. Goods And Service Tax Council And 4 Others	2017-18
14.	548 of 2024	M/S Vds Contractor Vs. Goods And Service Tax Council And 5 Others	2017-18
15.	597 of 2024	M/S Mani Electricals Vs. Goods And Service Tax Council And 4 Others	2017-18
16.	841 of 2024	M/S Neptune Suppliers Private Limited Vs. Goods And Service Tax Council And 4 Others	2017-18
17.	897 of 2024	M/S Sub

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2024 Supreme(All) 945

The court upheld the validity of notifications extending time limits for adjudication orders under GST, affirming that the COVID-19 pandemic constituted a force majeure circumstance justifying such extensions.

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