CBIC clarifies on applicability of SC ruling on timeline-extension to judicial/quasi-judicial proceedings
Background:
The Supreme Court had passed suo moto orders granting relief to litigants by way of a blanket extension of the limitation period for filing of petitions, applications, suits, appeals or all other proceedings considering the exigencies due to the COVID-19 pandemic. This applies to the limitation prescribed under general law of limitation or under special laws. The Supreme Court of India had, vide its most recent order dated 27 April 2021, restored its previous order dated 23 March 2020 – extending all periods of limitation ending on 14 March 2021 until further orders.
The Central Board of Indirect Taxes and Customs (CBIC) has issued a Circular clarifying the scope and extent of cognisance for the extension of limitation under GST law, in terms of the Supreme Court’s Order dated 27 April 2021. CBIC clarification on extension of limitation period
Circular No. 157/ 13/ 2021-GST dated 20 July 2021:
Pursuant to the deliberations during the 43rd Meeting of the GST Council on 28 May 2021 in the context of the extension of period of limitation under section 168A of the Central Goods and Services Tax Act, 2017 (CGST Act) CBIC has issued this clarification. In addition to the relaxations provided to taxpayers, the GST Council also recommended that the timelines for various actions and/ or compliances as extended by the Supreme Court’s suo moto orders would apply.
The instant Circular has been issued basis the legal opinion obtained by the Government. In short, the legal opinion states:
- The extension granted by Hon’ble Supreme Court order applies only to quasi-judicial and judicial matters relating to petitions/ applications/ suits/ appeals/ all other proceedings. Extension is not granted to every action or proceeding under the CGST Act.
- The extension is not applicable for the original adjudication.
- The following actions such as scrutiny of returns, issuance of summons, search, enquiry or investigations and even consequential arrest in accordance with GST law would not be covered by the judgment of the Hon’ble Supreme Court.
- As regards issuance of show cause notice, granting time for replies and passing orders, the present Orders of the Hon’ble Supreme Court may not cover them even though they are quasi-judicial proceedings as the same has only been made applicable to matters relating to petitions/applications/suits, etc.
On the basis of the above legal opinion received, the instant Circular contains the following clarifications on the applicability of the extension granted by the Hon’ble Supreme Court to matters for which timelines have been prescribed under GST law.
| Sl. No. | Issue | Clarification |
| 1 | Proceedings that need to be initiated or compliances that need to be done by the
taxpayers |
These actions would continue to be governed only by the statutory mechanism
and time limit provided/ extensions granted under the statute itself. The order passed by the Hon’ble Supreme Court is not applicable. |
| 2 | Quasi-Judicial proceedings by tax authorities | The Authorities can hear and dispose of the following proceedings and they would be governed by the time limits provided or extensions of time granted under the respective statutes(s) or vide notifications specifically issued in this regard:
(a) Disposal of application for refund (b) Application for revocation of cancellation of registration (c) Adjudication proceedings of demand notices (d) Appeals (which are filed and are pending) |
| 3 | Appeals by taxpayers/ tax authorities against any quasi- judicial order | The timelines for filing the following appeals or proceedings shall stand extended vide the Supreme Court’s order dated 27 April 2021:
(a) Appeals before the Joint or Additional Commissioner (Appeals) (b) Appeals before the Commissioner (Appeals) (c) Appeals before the Appellate Authority for Advance Ruling (d) Appeals before the Tribunal and various Courts against any quasi-judicial order (e) Proceedings for revision or rectification of any order The extension granted by the Supreme Court shall not be applicable to any other proceedings under GST law. |
Our Comments:
The instant Circular is as a welcome step and seeks to clarify the uncertainties on the applicability of the Supreme Court’s orders to the GST proceedings.
While this Circular has been issued with regard to proceedings under GST law, the principles would be applicable to the proceedings under pre-GST laws also. The Circular clarifies that the Supreme Court’s order would apply only to the filing of appeals and not to any other proceedings, such as filing of refund applications, filing replies to SCN, etc., where taxpayers were facing difficulties in complying with the time limit due to the pandemic.