In WP(C) NO. 816 OF 2023-KER HC- When time limit for issuance order u/s 73(10) of CGST/SGST Acts, for F.Y. 2017-18 has been extended upto 30^th Sep, 2023, then SCN can also be issued with reference to such date: Kerala HC
Justice Gopinath P. [11-01-2023]

 

Read Order: PAPPACHAN CHAKKIATH AND ORS v. ASSISTANT COMMISSIONER CTO NORTH PARAVUR AND ORS 

Mansimran Kaur

Ernakulam, January 30, 2023: While referring to Section 73(2) of the CGST Act, the Kerala High Court has clarified that the show cause notice to be issued under Section 73(1) has to be issued at least three months prior to the time limit specified in sub-section(10) for issuance of order. 

While dealing with the present petition preferred by the petitioner challenging  order issued by the first  respondent under Section 73 of the CGST/SGST Acts imposing on the petitioner a total liability of Rs.9,70,596 towards CGST and SGST payable by the petitioner for the period from July 2017 to March 2018, the Single-Judge Bench of Justice Gopinath P. opined that there was nothing to show that the impugned orders were issued without jurisdiction. 

Counsel appearing for the petitioner submitted that the entire proceedings culminating in the aforesaid order were without jurisdiction and therefore, notwithstanding the availability of any alternate remedy, the petitioner was entitled to challenge the said order by invoking the writ jurisdiction of this Court under Article 226 of the Constitution of India.

It was further contended that only the time limit for issuance of order was extended and the time limit for issuance of a show cause notice was not extended. 

On the contrary, the Counsel for the State mentioned that when the time limit for issuance of an order under sub-section(10) of Section 73 stands extended, automatically the time limit for issuance of a show cause notice under subsection(2) of Section 73 also stands extended.

After considering the rival contentions, the Court noted that the  contention raised on behalf of the petitioner must necessarily fail on a proper interpretation of Section 73 of the CGST/SGST Acts. 

“When the time limit for issuance order under sub-section(10) of Section 73 for the financial year 2017-18 has been extended upto 30.09.2023, the only interpretation that can be placed on the provisions of sub-section(2) of Section 73 is that, the show cause notice can also be issued with reference to the date 30.09.2023 and not with reference to any other date”, the Court further noted.  

Finding no ambiguity in the provisions requiring the Court to apply any rule of interpretation in favour of the assessee, the Bench opined that the petitioner had not made out any case for interference under Article 226 of the Constitution.

The Court failed to find that  the impugned orders were issued without jurisdiction and dismissed the writ petition.