2023 (10) TMI 338 - HC - GST

High Court Rejects GST Tax Appeal Due to Significant Delay Beyond Statutory Four-Month Limitation Period Under Section 112

M/s. ISHA HOLIDAYS (P) LTD. Versus COMMISSIONER, SGST DEPARTMENT, THIRUVANANTHAPURAM AND OTHERS

HC upheld the dismissal of a GST tax appeal filed 144 days late, exceeding the statutory four-month limitation period. The appellate authority lacked ... Maintainability of appeal - appeal dismissed on the ground that the same was barred by limitation as prescribed under Sub-section (1) read with Sub-section (4) of Section 107 read with Section 4 of the GST Act, 2017 - HELD THAT:- The appellate authority does not have any power to condone the delay in filing the appeal beyond the period of one month from the period of three months as prescribed under Sub-section 1 of Section 107 of the GST Act, 2017. As the petitioner has filed appeal beyond the total period of four months, it has been dismissed on the ground of delay. The petitioner is not in a position to point out any powers vested with the appellate authority to condone the delay beyond the period of four months. The appeal has to be filed within a period of three months and the appellate authority has the powe to condone the delay by one month if the appellate authority is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within a period of three months. In view of the fact that there is no power vested with the appellate authority to condone the delay beyond three months, this Court finds no grounds to entertain this writ petition and it is hereby dismissed. Issues Involved:The issues involved in this case are the validity of the assessment order passed under the Goods and Services Tax (GST) Act for the tax period 2017-18 and the dismissal of the appeal by the appellate authority on the ground of delay in filing.Validity of Assessment Order:The petitioner challenged the Exhibit P-1 assessment order passed by the State Tax Officer under Section 73 read with Rule 142 of the GST Act for the tax period 2017-18. The total tax, interest, and penalty assessed amounted to Rs.4,52,826/-. The petitioner sought relief under Article 226 of the Constitution of India, questioning the assessment order's legality.Dismissal of Appeal on Ground of Delay:The petitioner appealed the Exhibit P-1 assessment order before the appellate authority under Section 107 of the GST Act. However, the appeal was dismissed on the basis of being time-barred. The appellate authority cited that the appeal was filed 144 days late, exceeding the prescribed time limit of one month from the three-month period as specified in Section 107 of the GST Act. The appellate authority lacked the power to condone the delay beyond the total period of four months, leading to the dismissal of the appeal.Legal Analysis:The petitioner's counsel contended that the appellate authority did not possess the authority to condone the delay beyond three months as prescribed under the GST Act. The law stipulates that appeals must be filed within three months, with a provision for the appellate authority to extend this by one month in cases of sufficient cause. Since the appeal in question was filed beyond the total period of four months, the appellate authority was bound by the statutory limitations and could not entertain the appeal.Conclusion:Given the absence of statutory provisions allowing the appellate authority to condone delays beyond three months, the High Court found no grounds to entertain the writ petition challenging the assessment order. Consequently, the petition was dismissed, upholding the decision of the appellate authority regarding the time-barred appeal.