2023 (1) TMI 1130 - HC - GST

High-Stakes GST Appeal Time Limit Dispute: Conflicting Judicial Views Spark Critical Review of Procedural Powers Under Section 107

HC referred conflicting single judge opinions to Division Bench regarding power to condone delays in GST appeal filing under section 107. Two judges held ... Cancellation of their respective GST Registrations of petitioners - cancellation on the ground that the said appeals were filed beyond the maximum time limit stipulated under section 107 of GST Act - Difference of opinion. HELD THAT:- While dealing with the very same issue, one of the Hon'ble Single Judges of this Court (Anita Sumanth, J.) in MR. PANDIDORAI SETHUPATHI RAJA VERSUS THE SUPERINTENDENT OF CENTRAL TAX, CHENNAI [2022 (12) TMI 1028 - MADRAS HIGH COURT] held that this Court is having the power to condone the delay in filing the appeal under section 107 of the GST Act under certain extraordinary circumstances mentioned in the said order. However, another Hon'ble Judge of this Court in HEMASRI ENTERPRISES REPRESENTED BY ITS PROPRIETOR SAKTHI NARAYANAN VERSUS THE APPELLATE AUTHORITY / THE DEPUTY COMMISSIONER (ST) (FAC) GST-APPEAL, CHENNAI-II, THE ASSISTANT COMMISSIONER (ST) [2022 (12) TMI 705 - MADRAS HIGH COURT] and RAMANUJAN VENKATESAN VERSUS THE JOINT COMMISSIONER (APPEALS- II) O/O. OFFICER OF COMMISSIONER OF GST AND CENTRAL EXCISE (APPEALS- II), THE DEPUTY COMMISSIONER, GST AND CENTRAL EXCISE, O/O. CHENNAI OUTER COMMISSIONERATE, THE SUPERINTENDENT GST AND CENTRAL EXCISE, O/O. CHENNAI OUTER COMMISSIONERATE [2023 (1) TMI 436 - MADRAS HIGH COURT] has held that this Court while exercising powers under Article 226 of the Constitution of India, does not have the power to condone the delay when the statutory appeal filed under section 107 of the GST Act is beyond the maximum time limit stipulated in the said section. Since there are two contradictory views expressed by two Hon'ble Judges of this Court, Judicial Discipline and Propriety demands that, the matter is referred to a Division Bench of this Court. The point of reference to the Division Bench is as follows: Whether the view taken by the Hon'ble Single Judge (Anita Sumanth, J.) in her decision dated 16.11.2022 in the case of Pandidorai Sethupathi Raja or the view taken by another Hon'ble Single Judge (M.Sundar, J.) in his decisions (a) Hemasri Enterprises vs. The Appellate Authority / The Deputy Commissioner and (b) Ramunajan Venkatesan vs. The Joint Commissioner (Appeals-II) is correct. Registry is directed to immediately place this matter before My Lord, the Hon'ble Acting Chief Justice of this Court for getting suitable orders for posting these writ petitions before the appropriate Division Bench nominated by him for early hearing of these writ petitions. Issues:Challenging cancellation of GST Registrations, Entertaining appeals beyond time limit under section 107 of GST Act, Power of High Court to condone delay in filing appeals under Article 226 of the Constitution of India, Contradictory views of two Single Judges on condoning delay, Referral to Division Bench for resolution.Analysis:The judgment involves a batch of writ petitions challenging the cancellation of GST Registrations by the respondents. The petitioners contested the cancellation either directly or through appeals under section 107 of the GST Act. The main issue before the court was whether the High Court, under Article 226 of the Constitution of India, has the authority to condone delays beyond the time limit specified in section 107 of the GST Act for filing appeals.In a previous judgment by Hon'ble Single Judge Anita Sumanth, it was held that the High Court could condone delays in filing appeals under section 107 of the GST Act in exceptional circumstances. However, another Hon'ble Judge M.Sundar, in separate cases, ruled that the High Court lacks the power to condone delays when appeals exceed the time limit set by the Act. Due to this conflicting interpretation, the presiding judge referred the matter to a Division Bench for resolution.The Division Bench was tasked with determining whether the view expressed by Hon'ble Single Judge Anita Sumanth or that of Hon'ble Single Judge M.Sundar is correct regarding the High Court's authority to condone delays in filing appeals under section 107 of the GST Act. The Registry was instructed to present the matter to the Hon'ble Acting Chief Justice for appropriate assignment to a Division Bench for prompt adjudication of the writ petitions. This referral aims to ensure consistency and clarity in the interpretation of the law regarding the High Court's power to condone delays in GST appeal cases.