Supreme Court Allows Delayed Appeal in Tax Case, Mandates Strict Compliance with Procedural and Financial Requirements by 31.01.2024

SC analyzed a delayed appeal under BGST Act, focusing on statutory limitations for filing appeals. The court held that while a specific notification extended appeal timelines, strict procedural conditions must be met. Appellant must file in prescribed form, pay specified tax percentages, and comply with notification requirements by 31.01.2024. The appeal was conditionally allowed, subject to meeting prescribed legal conditions.

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Issues involved:
The issues involved in the judgment are related to the filing of a delayed appeal under Section 107 of the BGST Act, the authority's power to condone the delay, and the impact of a notification issued by the Central Board of Indirect Taxes and Customs extending the time for filing appeals against orders passed under Sections 73 and 74 of the BGST Act.

Summary:

Issue 1: Filing of Delayed Appeal
The petitioner filed a delayed appeal which was rejected for not being filed within the period of limitation as per Section 107 of the BGST Act. The Court held that when a specific period is provided in the statute for filing a delayed appeal, neither the Appellate Authority nor the Court can condone the delay beyond the specified period.

Issue 2: Extension of Time for Filing Appeal
A notification issued by the Central Board of Indirect Taxes and Customs extended the time for filing appeals against orders passed under Sections 73 and 74 of the BGST Act. The notification allowed for filing appeals on or before 31.01.2024, and provided a special procedure for filing such appeals.

Special Procedure for Filing Appeal:
- The appellant must file an appeal in FORM GST APL-01 by the specified date.
- Conditions include payment of admitted tax, interest, fine, fee, and penalty, as well as a sum equal to 12.5% of the remaining tax amount in dispute, subject to certain limits.
- No refund shall be granted until the appeal is disposed of.
- Appeals not involving tax demands are not admissible under the notification.
- Provisions of the Central Goods and Service Tax Rules, 2017 apply to appeals filed under this notification.

Conclusion:
The Court allowed the writ petition and set aside the order rejecting the appeal, subject to the petitioner satisfying the conditions outlined in the notification before the specified deadline. If the conditions are met, the appeal will be considered on its merits; otherwise, the impugned order will stand restored.

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