Intro:
The Madras High Court has ruled that GST time extension notifications under Section 168A cannot override the Supreme Court’s COVID-related exclusion of limitation periods. This decision holds major implications for GST refund claims, adjudications, and appeals filed during the pandemic years.
Background: What Is Section 168A of CGST Act?
Section 168A was inserted in 2020 to empower the Government to extend time limits under GST during disasters like the COVID-19 pandemic.
Key points:
- Introduced via Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
- Enabled the extension of compliance deadlines during COVID
- Covered appeals, refunds, assessments, and adjudication timelines
However, confusion arose due to overlapping timelines granted by CBIC notifications and the Supreme Court’s Suo Motu Writ (SMW) Order on COVID limitation exclusion.
What Did the Supreme Court Say on Limitation?
In In Re: Cognizance for Extension of Limitation (SMW(C) No. 3/2020), the Supreme Court:
- Excluded limitation from 15.03.2020 to 28.02.2022 for all judicial and quasi-judicial proceedings
- Said no statute or government notification can curtail this benefit
- Clarified this order applies to all proceedings, including tribunals and authorities under special laws like GST
Madras High Court’s Verdict: Section 168A Can’t Override SC
In M/s. Rochem India Pvt Ltd vs. Assistant Commissioner (W.P. No. 23375/2023), the Madras High Court held:
- Section 168A notifications cannot override Supreme Court’s blanket limitation exclusion.
- CBIC Notification No. 13/2022-CT dated 05.07.2022 tried to limit the time period to 01.03.2020 to 28.02.2021 only for GST-related claims.
- This notification violates Article 141 of the Constitution (binding nature of SC decisions).
Key Legal Takeaway
“The circular or notification issued under Section 168A must yield to the binding orders of the Hon’ble Supreme Court.” – Madras High Court
Impact on GST Refunds and Appeals
This judgment clears the way for many taxpayers to:
- File delayed GST appeals if the delay falls within SC’s excluded period
- Claim refunds rejected solely due to timelines calculated as per Section 168A
- Challenge adverse orders where timelines were interpreted restrictively
Expert View: Use Supreme Court Period as Default
Tax practitioners must advise clients that the COVID exclusion window (15.03.2020 to 28.02.2022) stands valid unless the Supreme Court modifies it.
Even if CBIC notifications mention shorter extensions, the SC’s order prevails. All GST officers are bound under Article 141.
Official Sources & Notifications
- Supreme Court SMW Judgment Link (SC.GOV.IN)
- CBIC Notification No. 13/2022 – CT dated 05.07.2022
- CGST Act Section 168A
Practical Tip for Taxpayers
Always refer to the Supreme Court’s exclusion period when filing delayed appeals or refund claims post-COVID. Don’t accept rejections citing Section 168A without legal challenge.
FAQs
Q1. Can GST officers reject refund claims filed after 28.02.2021 citing time bar?
A: Not valid if the delay is within 15.03.2020 to 28.02.2022. SC ruling overrides CBIC notifications.
Q2. Is the Madras HC order applicable across India?
A: While binding only in Tamil Nadu, its reasoning is based on SC rulings, making it persuasive nationwide.
Q3. Will similar petitions arise in other states?
A: Likely, especially where taxpayers face rejection of claims due to misapplied Section 168A.
Summary
Madras High Court ruled that GST time extension notifications under Section 168A cannot override the Supreme Court’s COVID exclusion of limitation periods from 15.03.2020 to 28.02.2022. This benefits refund claimants and appellants under GST.
Final Word
This verdict restores taxpayer rights during the COVID period and sends a clear signal that notifications under Section 168A cannot dilute the Supreme Court’s protective orders.