Limitation issue pending before SC impugned demand quashed and matter remanded for fresh decision{ Bangalore Matics (P.) Ltd. vs. Union of India [2026] 182 taxmann.com 429 (Karnataka)}
Facts
- The petitioner was issued GST proceedings and a demand order beyond the normal limitation period.
- The department justified the demand by relying on GST notifications extending limitation (issued during COVID period).
- The petitioner challenged the proceedings and the impugned demand order primarily on the ground of limitation.
- At the relevant time, the validity of the limitation-extending notifications was already seized by the Supreme Court.
Issue
- Whether GST demand proceedings and orders, issued by relying on limitation-extension notifications, could be sustained when the validity of such notifications was pending before the Supreme Court.
Held
- The High Court held that since the Apex Court was examining the validity of the notifications extending limitation, adjudicating the demand on merits at this stage would lead to multiplicity of proceedings.
- Accordingly, the impugned demand order was set aside.
The matter was remanded for fresh consideration, to be decided subject to the final outcome of the Supreme Court’s decision on the validity of the limitation-extension notifications.
