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29 July 2021

Delhi HC directed to hold final order pursuant to reopening of old assessments pertaining to pre GST period.

In case of M/S. TULI MOTORS THROUGH ITS MANAGING DIRECTOR & ANR. (Hereinafter referred as ‘Petitioner’) VS UNION OF INDIA & ORS. (Hereinafter referred as ‘Respondent’)   [W.P. (C) 6766/2021 decided on July 20, 2021],  a writ petition was filed challenging the show cause notice dated April 19, 2021, and the impugned summons dated October 10, 2017, and January 27, 2021 issued for reopening the old assessments for the period 2015 to 2017 as well as consequential proceedings emanating therefrom.

Ld. Council appeared on behalf of petitioner made following submissions:

  • The old assessments for the period 2015 to 2017 cannot be reopened in the year 2021.
  • The Petitioner emphasized that after the repeal of Chapter V of the Finance Act, 1994 (“the Finance Act”)by the Central Goods and Services Tax Act, 2017 (“the CGST Act”), there is no power to initiate any fresh proceeding under the repealed Act i.e. the Finance Act.

Earlier, Hon’ble Delhi High Court in case of Vianaar Homes Private Limited v. Assistant Commissioner (Circle-12), Central Goods & Services Tax, Audit-Il, Delhi & ors. [WP(C) 2245/2020, dated November 03, 2020] held that there is power to initiate fresh proceedings under the Finance Act despite coming into force of the CGST Act.

Heeding the aforesaid submissions, The Hon’ble High Court, Delhi directed that proceedings pursuant to the SCN and Impugned summons shall continue but the final orders shall not be given effect to till disposal of the writ petition.

The case has been listed for hearing on August 9, 2021.