Bhavani Furnitures vs Assistant Commissioner

Headnote AI-drafted · Editorially reviewed

These batch writ petitions filed under Article 226 of the Constitution of India challenged the validity of Notification No. 9/2023-Central Tax dated 31-03-2023 and the corresponding State notification G.O. Ms. No. 221 Revenue (Commercial Taxes) Department dated 17-05-2023, issued under Section 168-A of the CGST/SGST Acts, 2017, extending the period of limitation prescribed under Section 73(10) of the CGST Act, 2017 for the Financial Year 2017-18 up to 31-12-2023. The petitioners contended that the said notifications were ultra vires Section 168-A of the CGST Act, 2017, manifestly arbitrary and violative of Article 14 of the Constitution of India, and that assessment, penalty and interest orders passed pursuant thereto were barred by limitation and liable to be set aside.

The Andhra Pradesh High Court at Amaravati, constituted as a Division Bench comprising the Chief Justice and Justice R. Raghunandan Rao, heard arguments on behalf of all petitioners and respondents including the Central Government, the State Government and the GST Council. The petitioners also sought interim stay of collection of tax, interest and penalty pursuant to the impugned orders pending disposal of the writ petitions.

The core legal issues involved the interpretation of Section 168-A of the CGST Act, 2017 with respect to the power of the Government to extend limitation periods by notification, the constitutional validity of such extension notifications, and the validity of assessment orders passed thereunder for the Financial Year 2017-18, including ancillary issues of violation of principles of natural justice in rejection of Input Tax Credit claims.

Catchwords: GST CGST Act 2017 Section 168-A Section 73 limitation extension of limitation Notification No. 9/2023-Central Tax ultra vires Article 14 Article 226 writ of mandamus assessment order penalty input tax credit natural justice Financial Year 2017-18