2024 (12) TMI 1289 - HC - GST

Writ Petition Allowed for Time-Barred Appeal; Section 5 of 1963 Act Applies Beyond 60-Day Limit

M/s. Arjun Enterprise Versus Union Of India And Others

The HC allowed the writ petition challenging the dismissal of a time-barred appeal under Article 226. It held that limitation provisions should be ... Challenge to dismissal of appeal under Article 226 of the Constitution of India - time-barred appeal - HELD THAT:- Upon a thorough examination of the documents presented to the Court and taking into account the arguments put forth by the parties, this Court allows the writ petition as statutory provisions on limitation should be interpreted liberally in cases where genuine hardships are demonstrated, particularly in light of judicial precedents supporting such relief. In S.K. CHAKRABORTY & SONS VERSUS UNION OF INDIA & ORS. [2023 (12) TMI 290 - CALCUTTA HIGH COURT] the Hon’ble Division Bench held that 'since provisions of Section 5 of the Act of 1963 have not been expressly or impliedly excluded by Section 107 of the Act of 2017 by virtue of Section 29(2) of the Act of 1963, Section 5 of the Act of 1963 stands attracted. The prescribed period of 30 days from the date of communication of the adjudication order and the discretionary period of 30 days thereafter, aggregating to 60 days is not final and that, in given facts and circumstances of a case, the period for filling the appeal can be extended by the Appellate Authority.' In light of the procedural irregularities and the arbitrary nature of the actions, this court finds the petitioner’s case to be meritorious. Accordingly, the writ petition is allowed, and the appellate order dated 30.08.2024 is quashed. Issues:Challenge to dismissal of appeal under Article 226 of the Constitution of India due to procedural lapses and time-barred appeal.Analysis:The petitioner, a proprietorship entity engaged in manufacturing and trading, challenged the dismissal of their appeal under Article 226 of the Constitution of India. The appeal was dismissed due to procedural lapses and being time-barred. The petitioner, registered under GST, received a notice regarding discrepancies in GST returns for financial years 2017-18 and 2018-19. A demand notice was issued seeking recovery of short-paid tax and excess Input Tax Credit (ITC) with interest and penalty. The petitioner replied to the notice, but the demand was confirmed through an order-in-original. The petitioner faced difficulties in filing an appeal online due to the order not being uploaded on the GST portal, which is mandatory under the GST regime.Despite the procedural hurdles, the respondent authorities issued a recovery letter without uploading the order on the portal. The petitioner, unable to file an appeal online, resorted to filing a physical appeal with the requisite pre-deposit. The department uploaded the order on the portal nearly three months after the physical appeal was filed. However, the appeal was dismissed solely on the ground of being time-barred, without considering the procedural lapses or providing reasons for the dismissal.The Court allowed the writ petition, interpreting statutory provisions on limitation liberally in cases of genuine hardships. Citing a relevant judgment, the Court emphasized that the period for filing an appeal can be extended by the Appellate Authority based on the facts and circumstances of the case. Considering the procedural irregularities and arbitrary actions, the Court found merit in the petitioner's case. The appellate order dismissing the appeal was quashed, restoring the petitioner's rights under the GST Act, 2017 without adverse consequences. The Appellate Authority was directed to consider and decide the application for condonation of delay on its merits.All pending applications were disposed of, and no costs were awarded. Parties were instructed to act on the server copy of the order downloaded from the official website of the Court.