GST Breaking News: Gauhati HC quashes Notification No. 56/2023, being issued without Council’s recommendation. (Extension of time limit to issue notices).

Gauhati HC allows a batch of writ petitions challenging Notification No. 56/2023 extending time period for issuing demand orders for FY 2018-19 and FY 2019-20, holds the same as ultra vires Section 168A on the ground that the notification was issued without the recommendation of the Council as mandated by the Section; In open Court order, HC observes that, while the notification had false statement claiming that a recommendation was made and the recommendation served as its basis, the Circular issued on May 20, 2024, along with the stand taken in the affidavit, clearly indicates that no such recommendation existed prior to issuance of said Notification; Further, Court states that, notification was merely cleared by the implementation committee, which holds no relevance and that no recommendation was sought during the 50th, 51st, 52nd, or 53rd GST Council meetings; Accordingly, Court held that there is colourable exercise of power by the Government inasmuch as the Notification mentions that it has been issued on the recommendation of the GST council when there exists none.