2024 (1) TMI 1346 - HC - GST

Supreme Judicial Intervention Provides Conditional Appeal Restoration Pathway for Tax Dispute Resolution Under Special Notification

SC allowed delayed appeal under special notification, setting conditions for restoration. Appellant must pay admitted amounts and a percentage of disputed ... Rejection of delayed appeal - rejection of appeal having not been filed within the period of limitation - 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 conditions under paragraph no. 3 being satisfied. Hence the petitioner would be entitled to satisfy the Notification by paying up the deficient amounts as would be required to maintain the appeal under the notification. The impugned order dated 25.05.2023 at Annexure-6 set aside on condition of the assessee satisfying 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:1. Delayed appeal filed beyond the three-month period but within the one-month period under Section 107 of the BGST Act.2. Extension of time for filing appeals under Notification No. 53 of 2023-Central Tax.3. Conditions for filing an appeal under the special procedure prescribed in the notification.4. Restoration of appeal to the first Appellate Authority subject to conditions being satisfied.5. Entitlement of the petitioner to pay deficient amounts to maintain the appeal.6. Setting aside the impugned order and allowing the writ petition on specified conditions.Analysis:The petitioner filed a delayed appeal, rejected for being beyond the three-month period but within the one-month period allowed for delayed appeals under Section 107 of the BGST Act. However, no ground for condonation of delay was shown, resulting in dismissal. 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 Notification No. 53 of 2023, allowing appeals to be filed until 31.01.2024, beyond the usual one-month period for delayed appeals under Section 107(4) of the BGST Act.The special procedure outlined in the notification requires the appellant to file an appeal in a specific form, pay admitted amounts, and a percentage of the remaining tax in dispute. Refunds are prohibited until appeal disposal, and certain conditions must be met for appeal admissibility. The appeal against orders under Sections 73 or 74 must be filed by 31.01.2024, with pending appeals also considered if conditions are met, even with delays in filing.In the present case, the appeal was dismissed by the first Appellate Authority, necessitating restoration subject to fulfilling the conditions specified in the notification. The petitioner is entitled to pay deficient amounts to meet the conditions for maintaining the appeal, including remitting a specific percentage of the tax in dispute. The court set aside the impugned order, stipulating that the appeal would be considered on merits if conditions are satisfied by 31.01.2024; otherwise, the impugned order would stand restored, allowing the writ petition on these terms.