Delhi High Court Directs GST Assessee to Appellate Forum Amidst Pending Supreme Court Verdict on Limitation Extensions
The legal landscape surrounding the extension of limitation periods under the Goods and Services Tax (GST) framework remains in a state of flux. With conflicting judgments from various High Courts and the matter currently sub-judice before the Apex Court, the Delhi High Court has adopted a pragmatic approach in handling writ petitions challenging assessment orders based on these extended timelines.
In the recent matter of Bhutani Automobiles LLP Vs Union of India & Ors., the Delhi High Court addressed a writ petition filed under Article 226 of the Constitution. The petition challenged an assessment order raised for the financial year 2017–18 and simultaneously questioned the validity of notifications extending the adjudication time limits.
The Core Dispute
The assessee approached the High Court challenging an order dated 28 December 2023, issued by the Sales Tax Officer. This order crystallized a tax demand following a Show Cause Notice (SCN) issued on 25 September 2023.
Beyond the specific demand, the petition struck at the root of the jurisdiction exercised by the revenue authorities. The assessee contested the validity of:
- Notification No. 09/2023-Central Tax dated 31 March 2023
- Notification No. 09/2023-State Tax dated 22 June 2023
The primary contention was that the procedure mandated under Section 168A of the Central Goods and Services Tax Act, 2017 (CGST Act) was not adhered to while issuing these notifications. Specifically, the assessee argued that the statutory requirement of prior recommendations from the GST Council was either bypassed or ratified retrospectively, rendering the extensions legally unsustainable.