2025(03)LCX0001

Precaution Properties Private Limited

Versus

State of Maharashtra

WRIT PETITION NO. 5471 OF 2024 decided on 03-03-2025

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

ORDINARY ORIGINAL CIVIL JURISDICTION

WRIT PETITION NO. 5471 OF 2024

Precaution Properties Pvt. Ltd.             .. Petitioner

        Versus

State of Maharashtra & Ors.             .. Respondents

Adv. Jas Sanghavi i/b. PDS Legal for the Petitioner.

Adv. Amar Mishra, AGP for the Respondent Nos. 1 to 3.

Adv. Ravleen Sabharwal a/w Aarushi Yadav for Respondent No.4.

Adv. Jyoti Mhatre i/b. Komal Punjabi for Respondent No.5.

CORAM: B. P. COLABAWALLA &
                            FIRDOSH P. POONIWALLA, JJ.
DATE: MARCH 03, 2025

P. C

1. The above Writ Petition challenges the Notification No. 9/2023-Central Tax dated 31^st March, 2023 and Notification No. 56/ 2023-Central Tax dated 28^th December, 2023 issued by respondent No. 6 (Union of India) and Notification No. 9/2023-State Tax dated 24^th May, 2023 and Notification No. 56/2023 dated 16^th January, 2024 issued by Respondent No. 1 (State of Maharashtra) exercising powers under Section 168A of the Central Goods and Service Tax Act, 2017 (CGST Act). Consequently, the Petitioner also seeks quashing of the impugned Order No. MUM-NOD-C-133 (Old: MUM-VAT-C-841)/Colaba-701/GST Audit/Order DRC-07/2019-20/ Precaution Properties Pvt. Ltd./2024-25 B-186 dated 31^st August, 2024 issued in from GST DRC-07 passed by Respondent No. 3 under section 73 (9) of the CGST Act.

2. The short point in this Writ Petition is that the Notifications issued under Section 168A, extending the time limits specified under the CGST Act, are wholly illegal and ultra vires. The main ground of challenge is that these Notifications have to be issued on the recommendation of the GST Council (Respondent No. 7). It is the case of the Petitioner that though the Notification No. 9/2023-Central Tax dated 31^st March, 2023 and the Notification No. 9/2023-State Tax dated 24^th May, 2023 are issued on the recommendation of the GST Council, the subsequent Notifications, namely, Notification No. 56/2023-Central Tax dated 28^th December 2023 and Notification No. 56/2023-State Tax dated 16^th January 2024 are not issued on the recommendation of the GST Council. Since there has been non compliance of the provision of Section 168A, the same are impugned in the present writ Petition.

3. The reason why the impugned order is challenged, is because if the Notifications dated 28^th December 2023 and 16^th January 2024 are set aside, then, as a corollary, the impugned Order would also have to go, as the same is passed beyond the extended period prescribed by Notifications dated 31^st March 2023 and 24^th May 2023 respectively.

4. Mr. Sanghavi appearing on behalf of the Petitioner, submitted that the issue raised in the present Petition is already covered by a decision of the Gauhati High Court. He submitted that though on this issue, the Telangana High Court has held in the favor of the Petitioner, it came to the conclusion that because of the order of the Hon’ble Supreme Court in “Re Cognizance for extension of Limitation in (2022) (1) TMI 385 – SC ORDER”, the assessment was not time barred. He submitted that the Order of the Telangana High Court has been challenged before the Hon’ble Supreme Court and now the Supreme Court is seized of the matter. He therefore, submitted that this Writ Petition be admitted, rule be issued, and interim relief be granted.

5. On the other hand, the learned AGP appearing on behalf of the State submitted that Section 168A was brought into force by virtue of the Taxation and other Laws (Relaxation and Amendment of Certain Provision) Act, 2020. Section 168A was enacted specifically to deal with cases like wars and pandemics etc, and which would include the Covid-19 Pandemic. He submitted that once this is the provision, and the fact that the Covid-19 Pandemic would be a force majeur event [as contemplated under Section 168A], no exception can be taken to the the issuance of the said Notification. As far as the question whether the Notifications have been issued on the recommendation of the GST Council, the learned AGP submitted that he is not in a position to state whether in fact the two subsequent Notification dated 28^th December 2023 and 16th January 2024 were issued on the recommendation of the GST Council, or otherwise.

6. Having heard Mr. Sanghavi appearing on behalf of the Petitioner, and the learned AGP appearing on behalf of the Respondent, we are of the view that arguable questions are raised in the above Writ Petition. In fact, the issues raised in this Writ Petition are also the subject matter of proceedings before the Hon’ble Supreme Court (from the judgment and order passed by Telangana High Court).

7. In these circumstances, we issue Rule. Respondent Nos. 1, 2 & 3 waive service. Notice of Rule be issued to the remaining Respondents.

8. As far as the interim Relief is concerned, we find that in a similar matter, [in the case of Aspect Integrated IT Pvt. Ltd Vs. Union of India (Writ Petition No. 3969 of 2024 dated 8^th July 2024)], the Nagpur Bench of this Court has directed the Respondents in the said matter not to take any coercive action against the Petitioner. Here also, since the issue is whether the Notifications are valid and whether the impugned order could have been passed (especially, if Notifications dated 28^th December 2023 and 16^th January 2024 are set aside), we find that a strong prima facie case is made out for granting interim relief to the Petitioner. In these circumstances, there will be interim relief in terms of prayer clause (e) which reads thus:-

“that pending the hearing and final disposal of this petition, this Hon’ble Court be pleased to direct the respondents by themselves, their officers, subordinated, servants and agents by an interim order and injunction to refrain from acting upon or taking any further steps or proceedings in pursuance of and/or in furtherance Order-in-Original No. MUM-NOD-C-113 (old: MUM-VAT-C-841)/Colaba_701/GST Audit/Order DRC-07/2019-20/ Precaution Properties Pvt Ltd/2024-25 B-186 Mumbai dated 31.08.2024 passed by the respondent no. 3 in Form DRC-07 (Exhibit “B”);”

9. We grant liberty to the parties to apply in the event the matter before the Hon’ble Supreme Court is disposed of one way or the other.

10. To be heard along with Writ Petition No. 5146 of 2024 (OS).

11. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order.