2023 (5) TMI 882 - HC - GST

Maintainability of appeals under GST after COVID period exclusion; challenge held time-barred and petition dismissed.

Maintainability of an appellate challenge under GST was considered in light of the Supreme Court's exclusion of the COVID-19 period and grant of a 90-day ... Maintainability of appeal before the appellate authority - barred by time limitation or not - Short payment of GST - Covid-19 pandemic situation - HELD THAT:- Hon’ble Supreme Court in IN RE: COGNIZANCE FOR EXTENSION OF LIMITATION [2022 (1) TMI 385 - SC ORDER], considering the outbreak of Covid-19 pandemic have excluded the period during Covid-19 pandemic period with which the entire country was suffering i.e. from 15.03.2020 to 28.02.2022. In the order Hon’ble Supreme Court has observed that all persons shall have a limitation period of 90 days from 01.03.2022. Even if the submission of learned counsel for petitioner is accepted that First Appellate Authority erred in observing in the impugned order that there was delay of 536 days in the light of the order of Hon’ble Supreme Court to be wrong then also whether excluding the period as observed by Hon’ble Supreme Court will bring the appeal filed by petitioner within limitation. The period of limitation of 90 days, which was extended by Hon’ble Supreme Court starts from 01.03.2022 and will come to an end on 30-31st of May, 2022. The submission of learned counsel for petitioner that as the period of delay has wrongly been assessed by Appellate Authority in the light of the order of Hon’ble Supreme Court in case of Re-cognizance for extension of limitation, the matter be remitted back to the First Appellate Authority is also not sustainable as even after excluding the period between 15.03.2020 to 28.02.2022, filing of an appeal would not come within the extended period of limitation as ordered by Hon’ble Supreme Court and therefore, said exercise would serve no purpose. Further in the decision of High Court of Orissa at Cuttack relied on by petitioner in M/S. SHREE UDYOG VERSUS COMMISSIONER OF STATE TAX ODISHA, CUTTACK AND OTHERS [2021 (6) TMI 636 - ORISSA HIGH COURT], the appeal was filed within time limitation, however, the certified copy of the impugned order was filed after expiry of period of limitation and considering the Covid-19 pandemic situation and also the fact that the counsel and the client were infected with Covid-19, the order was passed extending the period of limitation. In the instant case period of limitation expired after normalization of Covid-19 pandemic situation. Petition dismissed. Issues Involved:1. Legality of the dismissal of the appeal by the Appellate Authority on the ground of limitation.2. Applicability of the Supreme Court's order on the extension of the limitation period due to the Covid-19 pandemic.3. Jurisdiction of the Appellate Authority to condone the delay beyond the permissible period provided under the Goods and Services Tax Act, 2017.Summary:1. Legality of the dismissal of the appeal by the Appellate Authority on the ground of limitation:The petitioner challenged the dismissal of their appeal by the Appellate Authority, which was rejected on the ground of limitation. The Appellate Authority observed that the appeal was barred by 536 days, which the petitioner argued was incorrect based on the Supreme Court's decision extending the limitation period due to the Covid-19 pandemic.2. Applicability of the Supreme Court's order on the extension of the limitation period due to the Covid-19 pandemic:The petitioner contended that the Supreme Court's order dated 10.01.2022 in Re: Cognizance for Extension of Limitation, which excluded the period from 15.03.2020 till 28.02.2022 for the purpose of limitation, was not considered by the Appellate Authority. The Supreme Court had directed that the limitation period would start from 01.03.2022, thus the observation that the appeal was barred by 536 days was argued to be incorrect. However, the court noted that even if the period was excluded, the appeal filed on 07.10.2022 was beyond the extended limitation period, which ended on 31.05.2022.3. Jurisdiction of the Appellate Authority to condone the delay beyond the permissible period provided under the Goods and Services Tax Act, 2017:The respondent argued that under Section 107 of the GST Act, the limitation for filing an appeal is three months, extendable by one month, and the Appellate Authority has no jurisdiction to condone delays beyond this period. The court referred to the Division Bench decision in Nandan Steels And Power Limited Vs. State of Chhattisgarh & Ors., which upheld that the GST Act is a special law and a complete code in itself, excluding the applicability of the Limitation Act. The court concluded that the legislative intent was not to apply the Limitation Act to proceedings under the GST Act.Conclusion:The court found no merit in the petition, noting that the appeal was filed beyond the permissible period even after considering the Supreme Court's extension of the limitation period due to the Covid-19 pandemic. The petition was accordingly dismissed.