Stay Granted Against Notification Extending Limitation for Adjudication
By: Admin
Date: January 29, 2025
Category: Important Pronouncements
Reading Time: 4 Min
The Hon’ble Uttarakhand High Court, in Hindustan Construction Company Limited v. Union of India [WPMB No. 548 of 2024, dated December 11, 2024], listed the case for hearing on February 25, 2025, along with WPMB No. 523 of 2024. The Court stayed the effect and operation of Notification No. 56/2023, dated December 28, 2023, and other consequential orders.
Key Judicial Precedents Challenging the Notification
Gauhati High Court’s Ruling
In M/s Barkataki Print and Media Services v. Union of India & Ors. [WP(C)/3585/2024, dated September 9, 2024], the Gauhati High Court declared Notification No. 56/2023 ultra vires, citing:
Lack of GST Council recommendation
Absence of force majeure grounds
This ruling serves as a critical precedent for taxpayers affected by extended adjudication timelines under invalid notifications.
Karnataka High Court’s Stay on Adjudication Orders
In Siemens-Gamesa Renewable Power Pvt Ltd. v. Deputy Commissioner of Commercial Taxes & Ors. [Writ Petition No. 31388/2024, dated December 10, 2024], the Karnataka High Court stayed adjudication orders related to erroneous refunds and return mismatches. The case challenged Notification No. 56/2023 issued under Section 168A of the CGST Act, 2017, along with State Notification No. 6/2023, dated April 6, 2023, which extended show-cause notice and order issuance deadlines for FY 2019-20 until August 31, 2024.
The challenge was based on:
- Lack of GST Council recommendation – Rendering the notification time-barred and without jurisdiction.
- Violation of res judicata and Article 14 of the Constitution – As no appeal was filed against the original refund order.
Widespread Judicial Scrutiny
Several High Courts across India have granted stay orders on similar grounds, reinforcing challenges against arbitrary extensions of limitation periods under Notification No. 56/2023.
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