GST Act Appeal Highlights Procedural Gaps in Tax Dispute Resolution Mechanism with Interim Relief Provisions

HC addressed a GST Act appeal challenge involving procedural complexities. The court granted interim relief by staying tax demand subject to partial deposit, recognizing the absence of a constituted 2nd appellate tribunal. The petitioner's challenge to the 1st appellate order was entertained, with the court acknowledging potential jurisdictional issues and procedural constraints in tax appeal mechanisms.

---

---

Issues:
The issues involved in this judgment are the challenge to the 1st appellate order under the GST Act, the delay in preferring the appeal, and the constitution of the 2nd appellate tribunal.

Challenge to 1st Appellate Order:
The petitioner filed a writ petition challenging the 1st appellate order dated 03.05.2023, which was passed by the Additional Commissioner of State Tax. The authority did not admit the appeal as it was deemed to be in contravention of specific sections of the GST Act. The petitioner contended that they are not liable to pay the tax and penalty, and since the 2nd appellate tribunal has not been constituted, the writ petition was entertained.

Delay in Preferring Appeal:
The Additional Standing Counsel argued that there was a delay in preferring the appeal, and the Court may not be able to condone the delay beyond four months. The appellate authority was not vested with discretion to condone the delay beyond one month after three months from the date of the impugned order. The petitioner was required to pay 20% of the balance disputed tax to appeal before the 2nd appellate tribunal.

Constitution of 2nd Appellate Tribunal:
As an interim measure, subject to the petitioner depositing the entire tax demand within fifteen days, the rest of the demand was stayed during the pendency of the writ petition. The petitioner sought to avail the remedy under the law by approaching the 2nd appellate tribunal, which had not yet been constituted. An interim application was disposed of, and the matter was listed along with another case on a specified date.

---