M/S. Rkec Projects Limited, vs Deputy Assistant Commissioner St, on 9 January, 2025

Summary of Interim Order

Case Title: M/S. Rkec Projects Limited, vs Deputy Assistant Commissioner St (and a batch of similar writ petitions)
Date of Order: January 9, 2025
Court: High Court of Andhra Pradesh
Bench: The Hon’ble Sri Dhiraj Singh Thakur (Chief Justice) and The Hon’ble Sri Justice R Raghunandan Rao

1. Outcome

This is a procedural interim order, not a final judgment on the merits of the case. The High Court adjourned the hearing of this batch of writ petitions to April 24, 2025, citing "paucity of time."

Crucially, the Court directed that all interim orders granted earlier in these matters (such as stays on recovery of tax, interest, and penalty) shall continue to operate until the next date of hearing.

2. Core Issue

The central legal question before the Court is the constitutional and statutory validity of notifications extending the time limit for issuing GST assessment orders.

Specifically, the petitioners challenge whether the Government's power under Section 168-A of the CGST/SGST Act, 2017, which allows for time limit extensions due to force majeure events like an epidemic, was validly invoked to issue notifications (e.g., Notification No. 09/2023 and No. 56/2023) in 2023 and 2024.

The petitioners contend that these extensions were arbitrary and unjustified, rendering the subsequent assessment orders for Financial Years 2017-18, 2018-19, and 2019-20 as barred by limitation.

3. Key Facts

• The petitioners are all registered taxpayers who have been issued Show Cause Notices and/or assessment orders under Section 73 of the CGST/SGST Act for various financial years (primarily 2017-18, 2018-19, 2019-20).
• These notices and orders were issued after the original statutory deadline prescribed under Section 73(10) of the CGST Act had expired.
• The GST authorities relied on a series of notifications issued by the Central Government (and corresponding G.O.s by the State Government) to extend these deadlines.
• The Government invoked its powers under Section 168-A of the CGST Act to issue these extensions, citing difficulties arising from the COVID-19 pandemic as a force majeure event.
• The petitioners filed a batch of writ petitions to quash the time-extending notifications and the consequential assessment orders passed against them.

4. Arguments

Petitioners' Primary Arguments:
* Ultra Vires: The impugned notifications are ultra vires Section 168-A. This power can only be exercised when it is impossible for the authorities to perform their duties due to a force majeure event. By 2023, the conditions of the COVID-19 pandemic no longer justified such a blanket extension.
* Arbitrariness: The extensions are manifestly arbitrary, without a rational nexus to the situation on the ground, and thus violate Article 14 of the Constitution of India.
* Barred by Limitation: Since the notifications extending the time limits are illegal, the assessment orders passed in reliance on them are barred by limitation and are therefore non-est (invalid) in the eyes of law.
* Other Grounds (in specific petitions):
* Challenges to the constitutional validity of Section 16(2)(c) and Section 16(4) of the CGST Act, which impose conditions for availing Input Tax Credit (ITC).
* Allegations of violation of the principles of natural justice during the assessment proceedings.
* Orders being passed without proper digital signatures or authentication.

(Note: The arguments of the Respondents (Government) are not detailed in this interim order.)

5. Court’s Reasoning

The Court provided no reasoning on the merits of the case. The order is purely procedural. The adjournment was granted for the explicitly stated reason of "paucity of time." The continuation of the interim orders indicates the Court's intention to maintain the status quo pending a detailed hearing.

6. Statutory References

• Central Goods and Services Tax (CGST) Act, 2017:
  • Section 73: Determination of tax not paid or short paid for reasons other than fraud.
  • Section 73(10): Prescribes the original time limit for issuing an order under Section 73.
  • Section 168-A: Power of Government to extend time limits in special circumstances (force majeure).
  • Section 16(2) & 16(4): Conditions and time limits for claiming Input Tax Credit.
• Andhra Pradesh Goods and Services Tax (APGST) Act, 2017: Corresponding provisions to the CGST Act.
• Constitution of India:
  • Article 14: Right to equality.
  • Article 19(1)(g): Right to practice any profession, or to carry on any occupation, trade or business.
  • Article 226: Power of High Courts to issue certain writs.
• Impugned Notifications:
  • Notification No. 09/2023-Central Tax, dated 31.03.2023
  • Notification No. 56/2023-Central Tax, dated 28.12.2023
  • Corresponding G.O.s issued by the State of Andhra Pradesh (e.g., G.O. Ms. no. 221).

7. Precedents Cited

The text of the petitions makes a reference to the following precedent:
* India Cements Ltd. vs. Collector of Central Excise ((1990) 1 SCC 12)

(Note: The Court's interim order itself does not cite or discuss any precedents.)