26 Mar Discretion of Appellate Authority in Admitting Appeals Beyond Limitation Period
In the case of Arvind Gupta v. Assistant Commissioner of Revenue State Taxes [Writ Petition Application No. 2904 of 2023 dated January 04, 2024], the esteemed Calcutta High Court determined that the Appellate Authority possesses the discretion to permit the submission of an appeal within one month after the expiration of the prescribed limitation period from the date of order communication, provided sufficient cause is demonstrated, as per Section 107(4) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).
Facts of the case:
- The Appellate Authority retains discretion to accept appeals submitted after the limitation period.
- The Calcutta High Court, in Arvind Gupta v. Assistant Commissioner of Revenue State Taxes [Writ Petition Application No. 2904 of 2023 dated January 04, 2024], affirmed that the Appellate Authority possesses discretion to entertain appeals within one month after the expiration of the limitation period as per Section 107(4) of the Central Goods and Services Tax Act, 2017 ("CGST Act").
- Arvind Gupta, the petitioner, appealed before the Senior Joint Commissioner of Revenue, mentioned in the annexure to FORM GST APL-01 the period of delay and reasons for the delay:
- He was undergoing treatment for carcinoma maxilla at Apollo Hospital, Delhi, during July 2023 (prescription enclosed).
- His health condition necessitated frequent visits to doctors in Delhi.
- Despite these reasons, the Respondent rejected the appeal on October 30, 2023 ("Impugned Order"), citing lack of provision in the West Bengal Goods and Services Tax Act, 2017 ("WBGST Act") to condone delays exceeding four months.
Issue:
Whether the Appellate Authority may exercise discretion to admit appeals submitted within one month after the limitation period?
Held:
- The Calcutta High Court, in Writ Petition Application No. 2904 of 2023, ruled as follows:
- Relied on, the Hon’ble Division Bench in the matter of S.K. Chakraborty v. Union of India & Ors. (MAT 82 of 2022) where the Bench held that the provisions of Section 5 of the Limitation Act, 1963 have not been expressly or impliedly excluded by Section 107 of the CGST Act under Section 29(2) of the CGST Act. Therefore, Section 5 of the Limitation Act, 1963 stands attracted. Hence, the Respondent has the discretion to allow an appeal to be presented within one month after the expiry of the period of limitation stipulated from the date of communication of the order upon sufficient cause being shown as per Section 107 (4) of the CGST Act. Paraphrase
- Observed that, it was well within the power of the Respondent to consider the prayer of the Petitioner for condonation of delay. The Impugned Order passed by the Respondent that there is no scope to condone the delay beyond four months suffers from infirmity.
- Noted that, the delay was evident from the annexure to FORM GST APL-01 and the Petitioner was prevented by sufficient cause for not preferring the appeal within the statutory period.
- Held that, the Respondent failed to exercise its jurisdiction. The delay in presenting the appeal before the Respondent was condoned. The Respondent was directed to consider the appeal on merit and decide the same in accordance with law upon giving an opportunity of hearing to the Petitioner.
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