2023 (10) TMI 1331 - HC - GST

Legal Challenge Overturns Delayed Appeal Dismissal, Mandates Proper Reasoning and Fair Hearing Under CGST Act Section 107

IMS Ship Managements Pvt. Ltd. Versus State of Maharashtra and Ors.

IMS Ship Managements Pvt. Ltd. Versus State of Maharashtra and Ors. - 2023 (79) G.S.T.L. 49 (Bom.) Issues involved:The challenge to an order passed by the Appellate Authority under Section 107 of the Central Goods and Services Tax Act, 2017 on the grounds of delay in filing the Appeal.Comprehensive Details of the Judgment:Issue 1: Delay in filing the AppealThe Petitioner challenged an order dated 12th December, 2022, passed by the Appellate Authority under Section 107 of the CGST Act, dismissing the Appeal as delayed by 59 days. The Petitioner contended that they were not informed about the Order In Original (O-I-O) dated 28th April, 2022, and only became aware of it upon receiving a recovery notice on 20th August, 2022. The Petitioner filed the Appeal on 26th September, 2022, within the 3-month period as per Section 107 of the CGST Act, arguing that there was no delay. The Respondent, however, claimed that the O-I-O was served and the limitation period should start from the date of uploading the order. The High Court found that the impugned order lacked reasons and did not consider the Petitioner's submissions regarding the starting point of limitation. As a result, the Court quashed the order and directed the Appellate Authority to give a personal hearing to the Petitioner, consider all submissions, and pass a speaking order addressing the limitation issue before adjudicating on the merits of the case.Conclusion:The High Court quashed the order dated 12th December, 2022, and restored the Appeal to the Appellate Authority for reconsideration with specific directions to address the issue of limitation and provide a speaking order.