GST limitation and conditional fresh adjudication: time-bar dismissal sustained, but a further opportunity to reply and be heard was allowed.

An appeal under the GST appellate framework was found time barred because it was filed beyond the condonable period, and the limitation-based dismissal was sustained. At the same time, the Court granted conditional equitable relief in view of the assessee's request for one further opportunity: on deposit of 10% of the disputed tax, the adjudication order was to be treated as a show cause notice, a reply and fresh personal hearing were to be allowed, and the adjudicating authority was directed to redo the adjudication and pass a fresh order on merits within the stipulated time.

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Issues: (i) Whether the appeal against the adjudication order was barred by limitation under the GST appellate framework; (ii) whether, in the peculiar facts, the assessee should be granted an opportunity to respond to the adjudication notice and have the matter reconsidered on merits.

Issue (i): Whether the appeal against the adjudication order was barred by limitation under the GST appellate framework.

Analysis: The appeal before the Appellate Authority had been filed beyond the condonable period prescribed under the statute. The adjudication order had been passed after the assessee did not participate in the proceedings or submit a reply, and the appellate dismissal on limitation was therefore not found fault with on the statutory plane.

Conclusion: The dismissal of the statutory appeal as time barred was upheld.

Issue (ii): Whether, in the peculiar facts, the assessee should be granted an opportunity to respond to the adjudication notice and have the matter reconsidered on merits.

Analysis: Considering that the assessee was a running business concern and sought one further opportunity to place its case and complete reconciliation, the Court directed a conditional opportunity to be granted. The assessee was required to deposit 10% of the disputed tax, treat the adjudication order as a show cause notice, file a reply, and then participate in a fresh personal hearing, after which the adjudicating authority was to redo the adjudication and pass a fresh order on merits within the stipulated time.

Conclusion: The assessee was granted a conditional opportunity for fresh adjudication on merits.

Final Conclusion: The matter was disposed of with a limited substantive relief in favour of the assessee by reopening the adjudicatory process on conditions, while sustaining the limitation-based dismissal of the statutory appeal.

Ratio Decidendi: Where an appeal is time barred but the facts justify equitable intervention, the Court may permit a conditional fresh adjudication by restoring an opportunity to reply and be heard, without disturbing the statutory limitation finding.

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