M/S. BARKATAKI PRINT AND MEDIA SERVICES, DHRUBAJYOTI BARKOTOKY AND OTHERS VERSUS UNION OF INDIA AND 4 ORS., THE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, THE GOODS AND SERVICES TAX COUNCIL, THE PRINCIPAL COMMISSIONER STATE TAX, THE ASSISTANT COMMISSIONER STATE TAX AND OTHERS vide WP(C)/3585/2024 WP(C)/4118/2024 WP(C)/4591/2024 And Others dated 19.09.2024
Citation: 2024 Taxo.online 2173
The Gauhati High Court has deliberated on the validity of Notification No. 56/2023-CT issued under Section 168A of the CGST Act, which extended certain timelines for tax compliance. It was clarified that Section 168A stipulates the need for a recommendation from the GST Council for the government to exercise its powers under this section. The argument by the counsel for the CGST that the government could act without such a recommendation was rejected. A recommendation is mandatory for the exercise of powers under Section 168A, and the absence of it makes the exercise of such powers invalid.
The Central Government issued this Notification No. 56/2023-CT, without a GST Council recommendation. The court concluded that this amounted to a colorable exercise of power. The court ruled the notification ultra vires to the Central Act because it was issued without following the mandatory recommendation requirement. As a result, several orders under Section 73(9) were passed during the extended period granted by Notification No. 56/2023-CT. Since this notification itself is under challenge for procedural irregularity, the validity of these orders is also called into question. If the notification is found to be invalid, the orders passed under its authority could be rendered without jurisdiction.
The Court allowed the writ petitions, declaring that Notification No. 56/2023-CT was ultra vires and thus invalid. The impugned orders based on this notification were quashed, but the governments retained the right to address the issue retrospectively if done in accordance with the law. The challenge to Notification No. 9/2023-CT is partly allowed to the extent that it extended deadlines without justifiable grounds of force majeure beyond the pandemic period.
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