The Patna High Court in a ruling furnishes a relief to the individuals who see delay in appeals under sections 73 and 74 of the BGST act.
The judgment that comes from the petition asks for the rejection of the petition because of the 5-day delay which shows the importance of a recent notification via the Central Board of Indirect Taxes and Customs.
The time is been extended for filing the petition against the orders issued via the proper officers on or before the date 31.03.2023, as per GST notification No. 53 of 2023-Central Tax, dated 02.11.2023 (S.O. 4767(E)).
The appeal rejection, challenged by the petitioner, was due to a five-day delay, surpassing the prescribed three-month filing period for appeals according to Section 107(4) of the BGST Act.
Acknowledging the statutory guidelines, the Court highlighted the specifics outlined in the notification. Section 107(4) allows a three-month window for appeals, with an extra one-month leeway for delayed filings.
Yet, the Court underscored that neither the Appellate Authority nor any Constitutional Court possesses the authority under the BGST Act to extend the limitation period.
The challenge in applying the notification to the petitioner’s case stemmed from the fact that the order was issued by the Proper Officer on 27th April 2023.
Read Also: Circular 16/2023 for Issuing Extra GST Notices U/S 73 and 74 to Taxpayers
This notification allows appeals for orders issued on or before 31st March 2023, specifically for cases not initiated within the prescribed time frame or for delayed appeals rejected beyond the specified period mentioned in Section 107(4).
The Court raised concerns about the rationale behind the fixed cutoff date of 31st March 2023, especially given that the notification itself was issued on 2nd November 2023. It proposed that orders passed at least three months before the notification date should qualify for such favourable consideration.
Consequently, the Court held, “In the above circumstances, we are of the opinion that the petitioner also can be allowed to comply with the conditions in Notification No. 53 of 2023 upon which the order passed in appeal would stand set aside and a fresh consideration will be made by the first Appellate Authority.”
“If the petitioner fails to fulfill the criteria as stated in the notification, then the impugned order will operate,” the Court mentioned at the time of permitting the writ petition.
| Case Title | M/s Prince Sanitation Gandhi Path vs. The State of Bihar and Ors |
| Case No | Civil Writ Jurisdiction Case No.17202 of 2023 |
| Date | 07.12.2023 |
| Counsel For Petitioner | Mr Gyan Shankar, Mr Abhinav Alok |
| Counsel For Respondent | Mr Raghwanand, Mr Pratik Kumar |
| Patna High Court | Read Order |
