Supreme Court to Review Government’s Authority on Time Extensions for GST Adjudication

The Supreme Court is preparing to examine whether the government has the authority to extend the time limit for adjudicating show cause notices (SCNs) under Section 73 of the GST Act by issuing notifications under Section 168A. This particular provision allows for time limit extensions in circumstances deemed as force majeure, which are unforeseen extraordinary events.

Background of the Case

A group of petitions was initially filed with the Telangana High Court, challenging the validity of notifications Nos. 13/2022, 9/2023, and 56/2023, which were issued under Section 168A of the GST Act. The petitioners raised several significant contentions:

  1. The SCN was issued on May 31, 2024, but the adjudication order was passed on August 29, 2024, which exceeded the time limit established under Section 73 of the Act.
  2. There was no force majeure situation to rationalize the extension of the time limit.
  3. Extensions related to COVID-19 were only valid until February 28, 2022, thus offering no justification for any subsequent extensions.
  4. The notifications were issued without obtaining the necessary recommendation from the GST Council, violating Section 168A.

High Court’s Ruling

The Telangana High Court reviewed previous judgments from other High Courts, including:

  • Allahabad High Court (Graziano Transmissions case): This court concluded that the Supreme Court’s general relaxation of limitation periods does not apply to GST proceedings.
  • Gauhati High Court (M/s. Barkataki Print case): It stated that obtaining a recommendation from the GST Council is essential for any extension under Section 168A.

The High Court noted that Notification No. 56/2023 was issued without prior recommendation from the GST Council, stressing that mere ratification after issuance does not validate it. The court emphasized the importance of the Council’s recommendation as a representation of cooperative federalism, ensuring engagement from all states.

However, the High Court also acknowledged the Supreme Court’s earlier decision to exclude the period from March 15, 2020, to February 28, 2022, when calculating limitation periods because of COVID-19. This exclusion rendered the validity of the recent notifications less significant in the context of this case.

Supreme Court’s Involvement

In response to the High Court’s ruling, the petitioners have now escalated the issue to the Supreme Court. They argue that conflicting views have emerged from different High Courts regarding this matter. The Supreme Court, presided over by Justices J.B. Pardiwala and R. Mahadevan, has issued a notice to the respondents and set the next hearing date for March 7, 2025.

The outcome of this case is poised to establish whether the government can legitimately extend the time limit for adjudicating SCNs under GST through notifications issued under Section 168A.

Download Order:

 M/S HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors. [SLP (C) No. 4240/2025]