Petitioner Wins Challenge to Appeal Rejection, Securing Right to Hearing Under CGST Act Section 121

HC allowed petitioner's challenge to appeal rejection under CGST Act. The court found the Additional Commissioner erred by not applying the SC's pandemic-related limitation period extension. HC set aside the appellate order, directing the Appellate Authority to hear the appeal on merits and provide the petitioner an opportunity to present their case within the extended limitation period.

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Issues:
Challenge to rejection of appeal on grounds of limitation under CGST Act due to pandemic-related extension of limitation period by Hon'ble Supreme Court.

Analysis:
The writ petition challenged the rejection of the appeal by the Additional Commissioner, GST (Appeals) based on the ground that it was filed beyond the statutory period prescribed under Section 107(1) of the CGST Act. The petitioner contended that the appeal against the cancellation of registration should have been entertained considering the Hon'ble Supreme Court's order dated 23rd September, 2021, which extended the period of limitation due to the COVID-19 pandemic. The petitioner's counsel highlighted specific dates and events, emphasizing the extension of the limitation period by the Supreme Court.

The petitioner's reliance on the Supreme Court's order dated 23rd September, 2021, was crucial in this case. The order excluded the period from 15th March, 2020, to 2nd October, 2021, for computing the limitation period for instituting proceedings. The petitioner argued that since the last date for filing the appeal fell within the excluded period, the appeal should have been considered as filed within the limitation period. The Senior Standing Counsel for CT & GST Organization did not raise serious objections to this position, further supporting the petitioner's stance.

Upon perusing the Supreme Court's order and considering the facts of the case, the High Court found that the Appellate Authority had erred in not applying the exclusion period specified by the Supreme Court. As the appeal was filed within the extended limitation period, the High Court set aside the impugned Appellate Order dated 29th July, 2021, and restored the appeal for further proceedings. The Court directed the Appellate Authority to hear the appeal, provide an opportunity for the petitioner to present their case, and decide on the merits, ensuring compliance with statutory requirements.

In conclusion, the High Court intervened in the appellate order, emphasizing the importance of adhering to the Supreme Court's directive on the exclusion of the limitation period due to the pandemic. The writ petition was disposed of in favor of the petitioner, highlighting the need for a fair hearing and consideration of the appeal in light of the extended limitation period as per the Supreme Court's order.

Certified Copy:
The High Court directed the issuance of an urgent certified copy of the order in accordance with rules.

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