2023 (12) TMI 67 - HC - GST

Supreme Court Upholds Conditional Appeal Restoration in Bihar GST Case, Mandates Partial Tax Payment and Compliance

The SC analyzed the Bihar GST Act's appeal provisions, focusing on time limits and delay condonation. The court allowed restoration of an appeal subject ... Maintainability of appeal - time limitation - appeal dismissed on the ground of delay. The maintainability of the appeal is regulated by paragraph no. 3 of N/N. 53 of 2023- Central Tax, dated 02.11.2023 (S.O. 4767(E)) which require that the admitted tax, interest, fine, fee and penalty arising from the impugned order is paid up along with a sum equal to 12.5% of the remaining amount of tax in dispute arising from the said order subject to a maximum of twenty-five crore rupees; out of which 12.5%, 20% should have been paid by debiting from the Electronic Cash Ledger. HELD THAT:- In the present case, the appeal was filed and was dismissed by the first Appellate Authority. In such circumstances, it is only proper that the appeal be restored to the files of the Authority subject to the condition as per paragraph no. 3 of the Notification being satisfied. The impugned order set aside - assessee is directed to satisfy the aforesaid conditions before the time stipulated in Notification; i.e. 31.01.2024, in which event, the appeal would be taken up and considered on merits - petition allowed. Issues involved:The judgment involves the interpretation of the Bihar Goods and Services Taxes Act, 2017 regarding the time limit for filing an appeal and the authority's power to condone delays.Interpretation of Section 107 of the BGST Act:The appeal in question was rejected due to being filed beyond the one month period allowed under Section 107 of the BGST Act. The court emphasized that when a specific period is provided in the statute for filing an appeal, neither the Appellate Authority nor the High Court can condone the delay beyond the prescribed period.Extension of Time for Filing Appeal:The Central Board of Indirect Taxes and Customs extended the time for filing appeals against orders under Sections 73 and 74 of the BGST Act through a notification. This extension allowed appeals to be filed until January 31, 2024, and introduced specific conditions that must be met for the appeal to be considered valid.Conditions for Filing Appeal under the Notification:The notification outlined conditions such as payment of admitted tax, interest, fine, fee, and penalty, along with a specified percentage of the remaining tax amount in dispute. It also restricted refunds until the appeal is disposed of and clarified that the appeal must involve a demand related to tax.Restoration of Appeal:In the present case, the court directed the restoration of the appeal to the authority's files, subject to the satisfaction of the conditions specified in the notification. The petitioner was given the opportunity to fulfill the necessary requirements before the deadline of January 31, 2024.Compliance with Notification Conditions:The judgment highlighted the importance of complying with the conditions outlined in the notification, specifically regarding the payment of the deficient amounts required to maintain the appeal. Failure to satisfy these conditions would result in the rejection of the appeal.Invocation of Remedy under the Notification:The court clarified that in cases where writ petitions against orders were rejected due to delays, the assessee could still benefit from the notification by meeting the specified conditions. It instructed the Commissioner, State Taxes, Government of Bihar to issue necessary instructions for assessment and appeal procedures in line with the notification.Final Decision:The writ petition was allowed on the condition that the petitioner fulfills the requirements of the notification before the stipulated deadline. Failure to comply would lead to the rejection of the appeal.