2023 (12) TMI 290 - HC - GST

Section 5 Limitation Act Applies to Section 107 Appeals, Allowing Delay Extension in Appellate Authority Cases

The HC held that Section 5 of the Limitation Act, 1963 applies to the appeal period prescribed under Section 107 of the Act of 2017, allowing condonation ... Applicability of Section 5 of the Limitation Act, 1963 to proceedings under a special statute - Interpretation of limitation under Section 107 of the West Bengal Goods and Services Tax Act, 2017 - Condonation of delay in filing appeals before the Appellate Authority - Effect of absence of a non-obstante clause and interaction with Section 29(2) of the Limitation Act, 1963Applicability of Section 5 of the Limitation Act, 1963 to proceedings under a special statute - Interpretation of limitation under Section 107 of the West Bengal Goods and Services Tax Act, 2017 - Effect of absence of a non-obstante clause and interaction with Section 29(2) of the Limitation Act, 1963 - Whether the discretionary power under Section 5 of the Limitation Act, 1963 is available to extend the period for filing an appeal under Section 107 of the West Bengal Goods and Services Tax Act, 2017. - HELD THAT: - The court examined the scheme of the special Act and the Limitation Act, 1963, in particular Section 29(2) of the Limitation Act, which governs the applicability of the general law where a special law prescribes a different period. Section 107 prescribes specific periods for filing appeals and a limited further period, but contains no non-obstante clause and does not expressly or impliedly exclude the Limitation Act. The presence of separate, longer periods for revision under Section 108 reinforces that the special statute did not intend an implied exclusion of the Limitation Act. Applying Section 29(2), the court held that Section 5 of the Limitation Act is not excluded and therefore the Appellate Authority may, in appropriate cases, extend the time for filing an appeal beyond the prescribed aggregate period where sufficient cause is shown. The court relied on the principle that applicability of the Limitation Act to a special law turns on express or implied exclusion and found none in Section 107. [Paras 18, 19, 20, 21]Section 5 of the Limitation Act, 1963 applies to appeals under Section 107 of the West Bengal GST Act, 2017; the Appellate Authority has power to condone delay beyond the prescribed period if sufficient cause is shown.Condonation of delay in filing appeals before the Appellate Authority - Interpretation of limitation under Section 107 of the West Bengal Goods and Services Tax Act, 2017 - Whether the Appellate Authority and the Single Judge were justified in refusing to entertain the appeal solely on the ground that it was filed beyond the statutory aggregate period without considering condonation on merits. - HELD THAT: - The court found that both the Appellate Authority and the Single Bench proceeded on the premise that they had no power to condone delay beyond the statutory aggregate period of 60 days and therefore did not assess the appellant's explanation. Given the conclusion that Section 5 is available, the Court set aside those orders and directed the Appellate Authority to consider the appellant's application for condonation of delay on merits. If the explanations for delay are found sufficient, the Appellate Authority may condone the delay and proceed to hear the appeals on merits. [Paras 22, 23]Impugned orders of the Appellate Authority and the Single Judge are set aside and the matter is remanded to the Appellate Authority to decide the application for condonation of delay on merits, and thereafter hear the appeals if delay is condoned.Final Conclusion: The court held that Section 5 of the Limitation Act, 1963 applies to appeals under Section 107 of the West Bengal GST Act, 2017; consequently the impugned orders refusing to entertain time-barred appeals without considering condonation were set aside and the Appellate Authority was directed to decide the condonation applications on merits and, if appropriate, hear the appeals. Issues Involved:1. Applicability of Section 5 of the Limitation Act, 1963 to the appeal filing period under Section 107 of the West Bengal Goods and Services Tax Act, 2017.2. Whether the Appellate Authority has the power to condone delay beyond the prescribed period.Summary:Issue 1: Applicability of Section 5 of the Limitation Act, 1963The appellant, a partnership firm, was served with a show cause notice alleging suppression of sales. An assessment order was passed on April 23, 2019, and the appellant filed an appeal on December 16, 2019, beyond the 60-day limit. The appellate authority refused to condone the delay citing Section 170 of the West Bengal Goods and Services Tax Act, 2017. The learned Single Bench held that no appeal could be preferred beyond 4 months from the date of communication of the order, referencing the Supreme Court decision in New India Assurance Company Ltd vs. Hilli Multipurpose Cold Storage Private Limited.Ms. Suman Schanabis (Mondal), for the appellant, argued that Section 107 of the Act of 2017 does not prohibit the applicability of Section 5 of the Limitation Act, 1963. She cited Kajal Dutta vs. Assistant Commissioner of State Tax and Superintending Engineer/Dehar Power House Circle Bhakra Beas Management Board (PW) Slapper and Another vs. Excise and Taxation Officer Sunder Nagar/Assessing Authority to support this contention.Ms. Rima Sarkar, for the State, contended that the delay was not adequately explained and relied on Assistant Commissioner (CT) LTU. Kakinada vs. Glaxo Smith Kline Consumer Healthcare Limited and New India Assurance Company Ltd to argue that delay beyond 4 months could not be condoned under Section 107 of the Act of 2017.The court analyzed Section 107 of the Act of 2017 and Section 29 (2) of the Act of 1963, concluding that Section 5 of the Limitation Act, 1963, applies as it is not expressly or impliedly excluded by Section 107 of the Act of 2017. The court held that the period for filing an appeal could be extended by the Appellate Authority in given facts and circumstances.Issue 2: Power to Condon Delay Beyond Prescribed PeriodThe court noted that the Appellate Authority did not assess the quality of the appellant's claim for condonation of delay, operating under the belief that it lacked the power to condone delays beyond 60 days. The learned Single Judge also held the same view.The court set aside the impugned orders of the learned Single Judge and the Appellate Authority, directing the Appellate Authority to consider the application for condonation of delay on merits. If the explanations for the delay are deemed sufficient, the Appellate Authority may condone the delay and hear the appeals on merits.With these observations, the appeals were disposed of without any order as to costs.[DEBANGSU BASAK, J.][MD. SHABBAR RASHIDI, J.]