2024 (5) TMI 243 - HC - GST

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 ... Rejection of delayed appeal - rejection of the appeal having not been filed within the period of limitation - HELD THAT:- An appeal against an order under Section 73 or 74 has to be filed on or before 31.01.2024, and any appeal filed which is pending before the authority could also be considered as properly filed, even if there is delay in such filing - However, the maintainability of the appeal is further 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. The further conditions in paragraph no. 4 to 6 also shall be applicable. 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 paragraph no. 3 of the aforesaid Notification by paying up the deficient amounts as would be required to maintain the appeal under the notification. The impugned order is 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. And if the conditions are not satisfied, then necessarily the impugned order would stand restored - petition allowed. 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 AppealThe 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 AppealA 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.