Facts of the Case

Tvl. Thangam Grand, a unit of Pandiyan Automobiles (P) Ltd., Madurai (GSTIN 33AADCP5203C1Z4), challenged an assessment order dated 10.08.2024 for AY 2019-20, along with the vires of Notification No.09/2023-Central Tax and Notification No.56/2023-Central Tax issued under Section 168A of the CGST Act, 2017 extending the limitation for passing Section 73 orders, as ultra vires and violative of Articles 14, 246A and 265 of the Constitution. The writ petition was filed well after the assessment order, and the petitioner had not replied to the notices preceding it; its bank account had also been attached as a consequence.

Issues Involved

  1. Whether an assessment order passed under the shelter of Notification No.56/2023, since held vitiated by the Principal Bench in Tata Play Limited, is sustainable.
  2. Whether relief should be granted despite the delayed challenge and the petitioner's failure to respond to the pre-assessment notices.

Petitioner's Arguments

  • The notifications extending limitation under Section 168A were ultra vires the provision itself, could not operate retrospectively, and violated Articles 14, 246A and 265.
  • The consequential assessment order for AY 2019-20 deserved to be quashed on this ground.

Respondent's Arguments

  • Represented by the Government Advocate for the State respondents and separate counsel for the Union of India; no independent defence of the notifications is recorded once the Tata Play Limited ruling was placed before the Court.

Court Order / Findings

  • Though the petitioner's delayed challenge and failure to reply to notices would ordinarily invite the Court to put it to terms, the Court instead followed the Principal Bench's recent ruling in M/s. Tata Play Limited vs. Union of India (2025 (7) TMI 772), which quashed Notification Nos. 9 and 56 of 2023 for curtailing the limitation period available under the Supreme Court's Article 142 COVID-exclusion order, being issued on an erroneous assumption of law and without proper GST Council recommendation.
  • Following Tata Play Limited and its own subsequent orders applying it, the Court quashed the impugned assessment order and remitted the matter for a fresh order on merits, leaving it open to the respondents to proceed in light of the Supreme Court's pending interim order in the HCC-SEW-MEIL-AAG JV SLP.
  • Noting the petitioner's bank account stood attached, the Court directed that the attachment be lifted forthwith and without delay.

Important Clarification

  • With the Principal Bench's ruling in Tata Play Limited holding Notification Nos.9 and 56 of 2023 vitiated for erroneously assuming the scope of the Supreme Court's COVID-exclusion order and for want of proper GST Council recommendation, assessment orders relying on the extended limitation are now being quashed and remitted as a matter of course.
  • This relief is granted even where the petitioner delayed in approaching the Court or did not respond to the pre-assessment notices, with any bank attachment ordered lifted immediately as a consequence.

Sections Involved

  • Section 168A, CGST Act, 2017 — power to extend time limits in special circumstances on the GST Council's recommendation, under which the impugned notifications were issued.
  • Section 73, CGST Act, 2017 — the underlying assessment provision whose limitation was purportedly extended.
  • Articles 14, 246A and 265, Constitution of India — grounds of constitutional challenge to the notifications.

Decision – In Favour of

The decision is in favour of the assessee. The assessment order was quashed and remitted for fresh adjudication on merits, and the bank attachment was ordered lifted.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P.(MD) No.29009 of 2025 and W.M.P.(MD) Nos.22492 and 22496 of 2025
Coram: Hon'ble Mr. Justice G.R. Swaminathan
Date of Order: 14.10.2025

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