Dismissal of appeal on delay and effect of CBIC notification allowing re-filing of time-barred appeals, appeal restored for fresh consideration

Challenge concerned rejection of appeals as time-barred under limitation rules and the effect of a CBIC notification permitting re-filing of appeals by persons whose appeals were earlier dismissed solely for delay. The reasoning emphasised that the notification extended the window for filing fresh appeals and created an option to re-file within the specified period; therefore the appellate authority ought to have considered appeals filed under that notification rather than rejecting them on limitation grounds. The consequence is that the impugned appellate order was set aside and the appeal was restored for fresh consideration.

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Issues: (i) Whether the appellate authority could dismiss an appeal filed by the taxpayers under the CBIC notification dated November 2, 2023 on the ground that it was barred by the limitation period prescribed in Section 107 of the GST Act, 2017.

Analysis: The appeal before the appellate authority was filed pursuant to the CBIC notification dated November 2, 2023 which granted an option to taxable persons whose earlier appeals had been dismissed solely on account of being time-barred under Section 107 to file fresh appeals on or before January 31, 2024. The petitioners lodged their appeal within that window. The appellate authority dismissed the renewed appeal again citing the statutory limitation under Section 107, without addressing or applying the CBIC notification that expressly permitted filing of fresh appeals by affected taxpayers. The matter therefore required examination of whether the notification entitled the petitioners to have their renewed appeal considered on merits and whether the appellate authority applied its mind to that notification when rejecting the appeal as time-barred.

Conclusion: The appellate order dismissing the appeal on the sole ground of limitation is unsustainable. The appeal filed within the period allowed by the CBIC notification dated November 2, 2023 must be restored for fresh consideration by the appellate authority; the decision is in favour of the assessee.

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