LI Network
Published on: December 29, 2023 at 12:24 IST
In a recent decision, the Patna High Court overturned the dismissal of a GST appeal, reinstating it under specified conditions outlined in Notification No. 53 of 2023-Central Tax.
The division bench, led by Chief Justice K. Vinod Chandran and Justice Rajiv Roy, stressed the importance of adhering to statutory timelines while recognizing opportunities provided by relevant notifications to revive dismissed appeals.
The court stated, “In this context, noticing the Notification, we also make it clear that wherever we have rejected the writ petitions filed against orders rejecting appeals for the reason of delay being beyond that prescribed under Section 107(4) of the BGST Act, the assessee would be entitled to invoke the said remedy.”
The ruling emerged from a writ petition challenging an order related to an appeal under the Bihar Goods and Services Taxes Act, 2017, dismissed due to a delay. The appeal was submitted beyond the one-month period provided under Section 107 of the BGST Act.
The court emphasized that, as per Notification No. 53 of 2023-Central Tax, the time for filing appeals against orders under Sections 73 and 74 of the BGST Act has been extended until 31.01.2024.
The Court acknowledged that appeals in process will be valid, even with a delay, if they follow the procedures outlined in the Notification.
The Court further highlighted the conditions specified in the Notification, including the payment of admitted tax, interest, fine, fee, and penalty arising from the impugned order, along with a sum equal to 12.5% of the remaining amount of tax in dispute, subject to a maximum of twenty-five crore rupees.
The Court concluded by setting aside the impugned order and directed the assessee to satisfy the conditions before 31.01.2024. If met, the appeal will be considered on its merits; otherwise, it will stand rejected.
Case Title: M/s Micro Zone vs The Union of India and Ors