Transitional input tax credit appeal filing deadline under Notification 29/2023, time-bar dismissal set aside, matter remitted for merits.

The dominant issue was whether the appeal seeking transitional credit could be dismissed as time-barred despite a statutory extension. The HC held that the appellate authority erred in ignoring Notification No. 29/2023, which permitted filing the appeal on or before 31.10.2023, rendering the limitation dismissal contrary to law. Consequently, the impugned order dismissing the appeal as barred by limitation was set aside, and the matter was remitted to the appellate authority to decide the appeal on merits, treating limitation as concluded in favour of the petitioner.

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The petitioner sought a writ of certiorari to quash the appellate order dated 29.12.2023 dismissing its GST appeal as time-barred. The dispute arose from rejection of an application for transitional credit: after a notice dated 15.02.2023 and reply dated 18.02.2023, an order dated 21.02.2023 denied the credit. Although Section 107(1) and (4) of the KGST Act ordinarily required an appeal within four months (3+1), Notification No.29/2023 dated 31.07.2023 permitted filing appeals under Section 107 "within a period of 3 months from the date of the notification," making 31.10.2023 the last date. The petitioner filed the appeal on 31.10.2023, yet the appellate authority dismissed it as barred by limitation. The Court held the authority "has failed to consider or taking into account" Notification No.29/2023 and found the dismissal "clearly erroneous and contrary to the aforesaid notification." The impugned order was set aside and the matter remitted for reconsideration "on merits...without reference to the period of limitation," holding the appeal within time and directing a reasonable opportunity of hearing.

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