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Gauhati High Court Rules notification No. 56/2023-CT invalid due to absence of GST Council Recommendation

The Gauhati High Court has issued a significant ruling concerning Notification No. 56/2023-CT, which aimed to extend deadlines for tax compliance under Section 168A of the CGST Act. The court determined that this notification was invalid because it was issued without the required recommendation from the GST Council, which is essential for the government to exercise its powers under this section.

As a result, any orders issued under Section 73(9) during the period extended by this invalid notification are also deemed to be without jurisdiction and therefore quashed.

The court also partially accepted a challenge to Notification No. 9/2023-CT, which extended deadlines without adequate justification for situations beyond the COVID-19 pandemic. This ruling underscores the importance of adhering to legal procedures when issuing notifications and highlights that extensions under Section 168A must be based on a legitimate “force majeure” event.

Force Majeure refers to extraordinary circumstances beyond a party’s control, such as natural disasters, epidemics, or wars, that prevent fulfilment of contractual obligations. In this context, it implies that any extension of deadlines must be justified by genuine unforeseen events that hinder compliance, emphasizing the necessity for transparency and proper authorization in such matters.

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