2026 (2) TMI 952 - HC - GST

Statutory appeal protected from limitation if filed within set period to enable merits decision by the Appellate Authority.

High Court directed the petitioner to pursue the statutory appeal under the Finance Act, 1994 rather than proceed by writ, holding that limitation and ... Export of services - service tax charge - limitation u/s 73 - supply of certified copy of adjudication order - right to appellate remedy - appellate authority to decide merits including limitation - remand for factual scrutiny - recovery proceedings - HELD THAT:- Since the petitioner has efficacious alternative remedy provided under the Finance Act, 1994 to prefer an appeal, this Court, without expressing opinion on the merits of the case, directs the petitioner to file appeal within a period of fifteen days from date. The copy of the Adjudication Order being supplied to the counsel for the petitioner in course of hearing of the present case, the Appellate Authority shall not raise issue of limitation in case appeal is filed within the period mentioned hereinabove. The petitioner shall file certified copy of the Adjudication Order within seven days from the date of delivery of such copy to him/authorized representative in consideration of application for grant of certified copy before the Appellate Authority. Subject to compliance of statutory requirement(s), other than the limitation for filing appeal, the appeal shall be admitted and decided on merits without being influenced by any of the observations touching the merit of the matter hereinabove discussed. writ petition is disposed of along with pending Interlocutory Application(s), if any. Issues: Whether, in view of the petitioner having an efficacious alternative remedy under the Finance Act, 1994 and the Adjudication Order being supplied during hearing, the High Court should direct the petitioner to file the statutory appeal and protect it from being rejected on limitation grounds so that the Appellate Authority may decide the merits.Analysis: The Court noted that the petitioner challenges service tax demands raised for FY 2014-15 to 2016-17 on grounds including that the transactions qualified as export of services under Rule 6A of the Service Tax Rules, 1994 and thus fell outside Chapter V of the Finance Act, 1994, and that the Adjudication Order was not communicated timely or certified copies supplied. The Court observed that factual findings on limitation and the prima facie applicability of the export exemption require scrutiny of the authority's records and are matters for the Appellate Authority to decide on evidence. Given the availability of a statutory appeal under the Finance Act, 1994 and the supply of the Adjudication Order during the hearing, the Court exercised its discretion to direct the petitioner to pursue the appellate remedy and placed a time limit for filing the appeal, with protection from a limitation objection if filed within that period. The Court further directed supply of a certified copy to the petitioner and required the Appellate Authority to admit and decide the appeal on merits without being influenced by observations in the writ petition.Conclusion: The petitioner is directed to file the statutory appeal within fifteen days; the Appellate Authority shall not raise limitation as a bar if the appeal is filed within that period; the petitioner shall obtain certified copy of the Adjudication Order within seven days of delivery; and the appeal shall be admitted and decided on merits. The writ petition is disposed of.