In the light of the global pandemic, Covid-19 the Parliament amended the CGST Act and inserted Section 168A w.e.f. 31.03.2020 and as per said section , Government may on the recommendation of the Council, by notification, extend the time limit specified in or prescribed or notified under the Act in respect of any action which cannot be completed due to force majeure.
The term force majeure has been explained as in case of war, epidemic, flood, draught, fire, cyclone, earthquake or any other calamity caused by nature or otherwise effective the implementation of any of the provisions of the Act. Section 168A is being reproduced for the ready reference:-
“Power of Government to extend time limit in special circumstances
168A. (1) Notwithstanding anything contained in this Act, the Government may, on the recommendations of the Council, by notification, extend the time limit specified in, or prescribed or notified under, this Act in respect of actions which cannot be completed or complied with due to force majeure.
(2) The power to issue notification under subsection (1) shall include the power to give retrospective effect to such notification from a date not earlier than the date of commencement of this Act.
Explanation.—For the purposes of this section, the expression "force majeure" means a case of war, epidemic, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature or otherwise affecting the implementation of any of the provisions of this Act.]”
Therefore, under the GST law , Central Government while exercising its power under Section 168A CGST Act, issued a Notification vide Notification No.09/2023-Central Tax dated 31.03.2023 extending the time limit to 31.3.2024 for financial year 2018-19.
The Central Government while exercising its power under Section 168A CGST Act, issued a Notification vide Notification No.56/2023- Central Tax dated 28.12.2023 extended, once again, the time limit to 30.04.2024 for financial year 2018-19.
It is pertinent to mention that on the said date 31.03.2023 and 28.12.2023, there was no force majeure as required under section 168A for extension of time limit.
Also specifically , talking about the Punjab state, there was no such notification of Punjab Government extending the time limit to 30.04.2024.
But Subsequently, the Punjab Government while exercising its power under Section 168A CGST Act, issued a Notification dated 23.08.2023 extending the time limit to 31.03.2024 for financial year 2018-19 even then also , that is , on the date 23.08.2023 there was no force majeure.
Subsequently, the Punjab Government while exercising its power under Section 168A CGST Act, issued a Notification dated 19.09.2024 making with effective from retrospective date, extended the time limit to 30.04.2024 for financial year 2018-19.
The cases for the for tax period 2017-18, 2018-19 and also 2019-20 were taken up in scrutiny assessment by the Proper Officers, accordingly DRC-01 was issued which culminated into the demand Order i.e. DRC 07 under Section 73 of the Act even without giving a proper opportunity of being heard (Audi Alteram Partem).
In some cases , just to finish off the cases , the replies filed by the assesse/tax payer were not considered which is even now after so many years are creating a hassle for the tax payer as in many a cases , being the new law /tax regime, even appeal could not be filed due to ignorance of law or non-communication of orders as per section 169 of the CGST Act, 2017.
Now , the department has initiated the recovery proceedings in maximum number of cases and immovable property and bank accounts are being attached by the Tax Department.
There is also violation of section 75(7) of the Act, in as much as the demand raised in maximum cases is much beyond the show cause notice. In SR Construction vs. State of U.P. [2025 TAXONATION 577 (ALLAHABAD)], the court came to the conclusion:
"7. Provisions of Section 75(7), inter alia, read as under:
"(7) The amount of tax, interest and penalty demanded in the order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice."
To conclude :-
I am of the view that the department should bring up an Amnesty scheme which includes condonation of delay in filing appeal as per section 107 which does not provides any power to the First Appellate Authority to condone the delay so that the tax payer should not be made to suffer.
From Ankit Dhiman Advocate Punjab & Haryana High Court
Email – adv.ankit@hotmail.com
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