2024 (3) TMI 112 - HC - GST

Tax Appeal Granted: Medical Emergency Validates 24-Day Delay in Filing, Penalty Challenge Accepted Despite Procedural Lapse

HC allowed appeal challenging tax penalty, directing Appellate Authority to accept appeal within 10 days despite 24-day delay. Petitioner's health issues ... Imposition of penalty and interest under Section 73 - condonation of delay in filing appeal - appellate authority's power under Section 107 - appeal limited to penalty and interest - payment of tax pending appealCondonation of delay in filing appeal - appellate authority's power under Section 107 - Whether the appeal should be admitted despite the delay beyond the statutory period and the Appellate Authority's power under Section 107 to condone delay. - HELD THAT: - The petitioner received the assessment order on 16.08.2023 and the 90 day limit for filing an appeal expired on 16.12.2023. The petitioner could not file within time due to being diagnosed with septic shock and related medical difficulties. The court noted that Section 107 does not permit the Appellate Authority to condone delay beyond 120 days, observed that the further period of delay in the present case was 24 days, and recorded that the petitioner had paid the entire tax liability and limited the proposed appeal to penalty and interest. In these circumstances the court exercised its supervisory jurisdiction to direct that the appeal be received and decided on merits if filed within the specified short period. [Paras 2, 3]The Appellate Authority is directed to receive the appeal and dispose of it on merits if the appeal is filed within ten days from receipt of this order.Imposition of penalty and interest under Section 73 - appeal limited to penalty and interest - payment of tax pending appeal - Adjudication on the merits of the challenge to imposition of penalty and interest. - HELD THAT: - The court did not decide the substantive correctness of the penalty and interest imposed under Section 73(9) and Section 73(7). Instead, having noted that the appeal is limited to penalty and interest and that tax liability has been discharged, the court remitted the matter to the Appellate Authority for disposal on merits. The Appellate Authority is to examine and decide the challenge to penalty and interest in accordance with law when the appeal is presented within the directed period. [Paras 3]The appeal is to be decided on merits by the Appellate Authority if filed within ten days; the substantive challenge to penalty and interest is remitted for fresh adjudication.Final Conclusion: Writ petition disposed by directing the Appellate Authority to receive and decide the appeal on merits if presented within ten days of receipt of this order; no costs. Issues involved: Challenge to order imposing penalty and interest u/s 73(9) and 73(7) of the CGST Act, 2017. Delay in filing appeal due to health reasons.The petitioner challenged the order dated 14.08.2023 regarding the imposition of penalty and interest u/s 73(9) and 73(7) of the CGST Act. The petitioner cited health issues, specifically being diagnosed with septic shock, as the reason for the delay in filing the appeal within the stipulated 90 days. The appeal, which should have been filed by 16.12.2023, could not be submitted in time due to health-related constraints. The Appellate Authority's power to condone delay beyond 120 days u/s 107 of the CGST Act was highlighted, with the petitioner providing valid reasons for the 24-day delay in this case. Notably, the petitioner had already settled the entire tax liability, with the appeal focusing solely on penalty and interest matters.The High Court directed the Appellate Authority to accept and address the appeal on its merits if submitted within ten days from the receipt of the court's order. The court disposed of the case with no costs incurred, and the related miscellaneous petition was subsequently closed.