2024 (8) TMI 306 - HC - GST

Tax Appeal Saved: Procedural Delay Overruled, Substantive Justice Prioritized Under Section 107 of TNGST Act

The SC reviewed a tax appeal rejected due to limitation under Section 107 of TNGST Act, 2017. Despite a 5-day delay in filing, the court directed the ... Rejection of appeal on the ground of time limitation - Delay of 5 days - appeal filed beyond the statutory period of limitation under Section 107 of the TNGST Act, 2017 - HELD THAT:- It is noticed that the appeal made before the first respondent is dated 24.04.2024. Though the limitation for filing an appeal under Section 107 GST would have expired on or before 20.03.2023, the petitioner had another 30 days period for filing of application to condone the delay upto 19.04.2023 explaining sufficient cause to condone the delay. Hence, there is a marginal delay of only 5 days in filing the appeal beyond the condonable period. Prima facie, the Court is of the view that the order rejecting the appeal cannot be faulted as the second respondent is statutory authority and duty bound to comply with the provisions relating to limitation. At the same time, it is noticed that the petitioner may have a case on merits as the dispute arose on account of the variance between the Returns filed by the petitioner and the inward supply in GSTR 2A and the auto populated information in GSTR 2B. The Court is of the view that the first respondent can dispose of the appeal on merits as no assessee will gain by deliberately delaying in filing the appeal where such assessee is aggrieved by the order passed by the Original Authority - Considering the fact that the petitioner may have a case on merits, the Court is of the view that there can be a positive direction to the first respondent to dispose of the appeal on merits and in accordance with law without reference to limitation. Petition disposed off. Issues:1. Appeal against rejection of appeals due to limitation under Section 107 of TNGST Act, 2017.Analysis:The petitioner challenged the impugned order rejecting their appeals against the Order-in-Original dated 21.12.2023 for the assessment year 2017-18, citing that the appeal was rejected by the first respondent due to being beyond the statutory period of limitation under Section 107 of the TNGST Act, 2017. The appeal was dated 24.04.2024, with the limitation for filing having expired on or before 20.03.2023. However, the petitioner had an additional 30 days to file an application to condone the delay, which would have extended the deadline to 19.04.2023. The Court noted a marginal delay of only 5 days beyond the condonable period.The Court acknowledged that the second respondent, being a statutory authority, was duty-bound to comply with the provisions relating to limitation. Despite this, the Court recognized that the petitioner might have a valid case on merits, particularly due to discrepancies between the Returns filed by the petitioner and the information in GSTR 2A and GSTR 2B. The Court opined that the first respondent should consider the appeal on its merits, emphasizing that no assessee would benefit from intentionally delaying the appeal process when aggrieved by the Original Authority's decision.The Court observed that the confirmed tax amount on the petitioner was Rs. 5,90,700.92 (Rs. 2,95,350.46 each towards SGST & CGST), with additional interest and penalty imposed. Considering the potential merit in the petitioner's case, the Court directed the first respondent to dispose of the appeal on its merits and in accordance with the law, without being hindered by the issue of limitation. Consequently, the Writ Petition was disposed of with the aforementioned directions, with no costs incurred, and the connected miscellaneous petition was closed.