Tax Appeal Deadline Extended: Small Trader Granted Exceptional Relief Despite Late Filing of Statutory Challenge

HC dismissed the writ petition challenging a tax order but granted exceptional relief. Despite the belated appeal filing beyond the 120-day limitation period, the court allowed the petitioner one week to approach the appellate authority, subject to meeting procedural requirements. The decision considered the petitioner's status as a small trader and provided procedural flexibility.

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Issues Involved:
The issues involved in the judgment are the belated filing of an appeal under the Tamil Nadu Goods and Services Tax Act, 2017 and the challenge to the validity of Section 16(4) of the Act.

Belated Filing of Appeal:
The petitioner approached the court belatedly, almost four months after the impugned order was passed under the Act. The delay exceeded the permissible period for filing an appeal, which is 120 days. The petitioner claimed that the delay was not willful, attributing it to the mistake of the accountant. The petitioner explained to the respondent that the delay in filing the return was due to the accountant's error, leading to the cancellation of the registration certificate. Despite these reasons, the court did not find justification to intervene in the matter.

Challenge to Section 16(4) of the Act:
The validity of Section 16(4) of the Act, which allowed the respondent to reverse input tax credit, was challenged in another case pending consideration. Although this challenge was not raised by the petitioner, it was noted by the court. However, this point on merits did not influence the court's decision to intervene in the present case.

Court's Decision:
Considering the petitioner's status as a small trader and the explanation provided in the affidavit, the court allowed the petitioner to approach the appellate authority. The petitioner was given one week to file an appeal without being restricted by the limitation period, provided all other requirements, including pre-deposit, were met. The writ petition was dismissed with liberty, meaning the petitioner had the freedom to seek remedy through the appellate authority. No costs were awarded, and connected miscellaneous petitions were closed.

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