Tax Appeal Reinstated: Insufficient Reasoning Leads to Remand, Highlighting Procedural Fairness in CGST Proceedings The HC allowed the appeal against dismissal of a tax appeal. The appellate authority's order was set aside due to lack of reasoning for considering the ...
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Tax Appeal Reinstated: Insufficient Reasoning Leads to Remand, Highlighting Procedural Fairness in CGST Proceedings
The HC allowed the appeal against dismissal of a tax appeal. The appellate authority's order was set aside due to lack of reasoning for considering the appeal time-barred. The court remanded the matter back for proper consideration under CGST Act, acknowledging potential COVID-19 related limitation extensions granted by SC. The case emphasized procedural fairness in appellate proceedings.
Issues involved: Appeal against dismissal of appeal by appellate authority u/s 107(4) of CGST Act for delay in filing appeal.
Summary: The petitioner, a sole proprietorship firm engaged in the sale of glasses, had its goods and vehicle seized by the respondent authorities due to an expiry mismatch of E-way bill with tax invoice. The petitioner sought provisional release of goods and vehicle, which was granted. Subsequently, a final order u/s 138 of CGST Act was passed on 27.09.2019, leading to the petitioner filing an appeal that was dismissed by the appellate authority citing delay in filing the appeal beyond the prescribed period under Section 107(4) of the CGST Act.
The petitioner argued that Section 107 of the CGST Act allows for an appeal to be filed within three months, extendable up to seven months by the appellate authority. Due to the global impact of the Corona Virus outbreak, the appeal was filed on 29.10.2021, within the extended limitation period granted by the Hon'ble Supreme Court up to 28.02.2022.
On the other hand, the respondent contended that the limitation period for filing the appeal ended on 30.01.2020, before the exemptions granted by the Supreme Court from 15.03.2020 to 28.02.2022 came into effect. The respondent also highlighted the lack of application for condonation before the appellate authority.
The court observed that the impugned order by the appellate authority did not provide reasons for considering the appeal as time-barred and failed to exercise the power granted u/s 107(4) of the GST Act. Consequently, the court set aside the impugned order dated 14.10.2022 and remanded the matter back for proper consideration in accordance with the provisions of the Act.
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