The CBIC has clarified that the extension of time limit for tax-related matters granted by the Supreme Court is restricted only to filing of appeals by taxpayers and would not apply to any other compliance or assessment under the GST Act.
In a letter to all Principal Chief Commissioners and Director Generals, the Central Board of Indirect Taxes and Customs (CBIC) said it had sought legal opinion on the applicability of the Supreme Court order dated April 27, 2021, regarding limitations of timeline under the Goods and Services Tax (GST) law.
"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. Hon'ble Supreme Court has stepped in to grant extensions only with reference to judicial and quasi-judicial proceedings in the nature of appeals/ suits/ petitions etc. and has not extended it to every action or proceeding under the CGST Act," the CBIC said.
Various orders and extensions passed by the Supreme Court would apply only to acts and actions which are in the nature of judicial, including quasi-judicial exercise of power and discretion, the CBIC added.
In cases where proceedings need to be initiated or compliances need to be done by the taxpayers, such actions would continue to be governed only by the statutory mechanism and the time limit provided/ extensions granted under the statute itself.
"Various orders of the Hon'ble Supreme Court would not apply to the said proceedings/ compliances on part of the taxpayers," the CBIC added.
Similarly, tax authorities can continue to hear and dispose off proceedings like application for refund, application for revocation of cancellation of registration, adjudication proceedings of demand notices, etc, where they are performing the functions as quasi-judicial authority.
Similarly, appeals which are filed and are pending, can continue to be heard and disposed off and the same will be governed by those extensions of time granted by the statutes or notifications, the CBIC added.
However, in cases where any appeal is required to be filed before Joint/ Additional Commissioner (Appeals), Commissioner (Appeals), Appellate Authority for Advance Ruling, Tribunal and various courts against any quasi-judicial order or where a proceeding for revision or rectification of any order is required to be undertaken, the timeline for the same would stand extended as per the Supreme Court's order.
Extension of timelines granted by the Supreme Court "is applicable in respect of any appeal which is required to be filed before Joint/ Additional Commissioner (Appeals), Commissioner (Appeals), Appellate Authority for Advance Ruling, Tribunal and various courts against any quasi-judicial order or where proceeding for revision or rectification of any order is required to be undertaken, and is not applicable to any other proceedings under GST law," the CBIC added.
AMRG & Associates Senior Partner Rajat Mohan said "this clarification will restrict the blanket extension given by the apex court due to the pandemic, and tax authorities may soon accelerate the disposal of pending cases at hand."
