Petitioner can file delayed appeal against excess input tax credit order with condonation application until January 2024

Gujarat HC disposed of petition regarding delay in filing appeal against excess input tax credit order. Court held petitioner can file appeal with condonation of delay application, citing 52nd GST Council recommendations allowing appeals against orders passed before 31.03.2023 to be filed until 31.01.2024. Court noted violation of natural justice principles as assessment order showed discrepant figures across notices. Appellate authority directed to consider these circumstances when deciding condonation application.

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Issues involved: Challenge to order under Section 73 of the GST Act for excess input tax credit claimed.

Summary:

Issue 1: Challenge to order under Section 73 of the GST Act
The petitioner, a partnership firm engaged in manpower services, challenged an order dated 06.04.2022 under Section 73 of the GST Act for claiming excess input tax credit. The petitioner received a notice in Form ASMT-10 under section 61 of the Act for financial year 2018-19, followed by a show-cause notice under Section 73 for claiming Rs. 46,85,584/- excess input tax credit. The petitioner contended that the order was passed without giving an opportunity of hearing, violating principles of natural justice. The petitioner cited a court decision suggesting that orders passed without an opportunity of hearing should be set aside for a fresh hearing. The respondent relied on a decision regarding the maintainability of petitions under Article 226 of the Constitution of India. The court noted that the petitioner could have filed an appeal but chose not to do so, and recommended filing an appeal with an application for condonation of delay as per the 52nd GST Council recommendations.

Issue 2: Remedy for violation of natural justice
The court observed that even if there was a violation of natural justice, the petitioner had the remedy of filing an appeal but did not do so. The court referred to a decision stating that jurisdiction under Article 226 cannot be exercised to condone a time-barred appeal. The court suggested that the petitioner can file an appeal with an application for condonation of delay, explaining the circumstances preventing timely filing. The court highlighted the GST Council's recommendations for an amnesty scheme for filing appeals against demand orders, allowing appeals until 31.01.2024 for orders passed on or before 31.03.2023.

Conclusion:
The petition was disposed of with the court clarifying that it did not delve into the merits of the matter. The appellate authority was advised to consider the aspects raised in the petition, the court's observations, and the GST Council recommendations while deciding on the application for condonation of delay.

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