2023 (4) TMI 701 - HC - GST

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 ... Condonation of delay - appeal under Section 107 of the Tamil Nadu Goods and Services Tax Act, 2017 - exercise of writ jurisdiction in the face of delay - pre-deposit requirement for entertaining an appeal - reversal of input tax credit under Section 16(4) of the ActCondonation of delay - appeal under Section 107 of the Tamil Nadu Goods and Services Tax Act, 2017 - pre-deposit requirement for entertaining an appeal - exercise of writ jurisdiction in the face of delay - Whether the petitioner may be permitted to file an appeal out of time and have it entertained despite the statutory limitation, and on what conditions. - HELD THAT: - The impugned order was dated 11.08.2022 and the statutory window for filing an appeal under Section 107 (120 days: 90 + 30) had elapsed; as on date the delay was almost four months. Ordinarily no condonation is available thereafter. The Court examined the petitioner's affidavit which furnished an explanation attributing delay to the accountant's mistake and demonstrated a limited, not willful, delay; the petitioner is a small trader. Although the Court noted that the petitioner had also impugned the reversal of input tax credit under Section 16(4) in other proceedings, that substantive challenge did not persuade the Court to exercise writ relief in the face of delay. In the exercise of discretionary writ jurisdiction, the Court declined to entertain the writ petition itself but granted the petitioner liberty to file the statutory appeal within one week. The appellate authority was directed to entertain the appeal without reference to limitation provided the appeal is filed within the prescribed week, subject to compliance with all other statutory and procedural requirements, including the obligation to make the requisite pre-deposit. [Paras 5]Writ petition dismissed with liberty to file the appeal within one week; the appellate authority shall entertain it without reference to limitation but ensuring compliance with all other requirements including pre-deposit.Final Conclusion: The writ petition is dismissed, subject to liberty granted to the petitioner to file the appeal within one week; the appellate authority shall entertain the appeal notwithstanding limitation, while ensuring compliance with pre-deposit and other statutory requirements. No costs. 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.