Tax Appeal Process: What You Need to Know

Introduction

In the realm of taxation, the process of filing appeals plays a crucial role in addressing grievances and seeking clarifications on contentious matters. However, there are instances where delays occur in filing appeals due to various reasons. Understanding the provisions for condonation of such delays is essential for ensuring fairness and justice in the legal framework.

Facts of the Case

M/s. Faiveley Transport Rail Technologies India Limited, a private limited company operating in the Rolling Stock industry, sought clarification regarding the applicability of GST and eligibility of Input Tax Credit (ITC) through an Advance Ruling. The Appellant received a ruling on December 20, 2023, which deemed GST applicable to certain services provided by them. Dissatisfied with the ruling, the Appellant filed an appeal and petition for condonation of delay on April 12, 2024, beyond the stipulated time limit.

Issue

The primary issue at hand is whether the delay in filing an appeal can be excused if the appellant can demonstrate sufficient cause for the delay.

Held

The Tamil Nadu Appellate Authority for Advance Ruling (AAAR) reviewed the circumstances surrounding the delay. Despite the appellant’s failure to file the appeal within the prescribed time frame, the AAAR considered the medical certificate provided, which indicated that the appellant’s representative was undergoing medical treatment during the critical period of appeal filing. Additionally, a formal request for extension was made to the Commissioner of Commercial Taxes, further corroborating the appellant’s claim of unavoidable delay. Consequently, the AAAR invoked the proviso to Section 100(2) of the Central Goods and Services Tax Act, 2017 (CGST Act), condoning the delay of 27 days and allowing the appeal to proceed for consideration on its merits.

Conclusion

The case of M/s. Faiveley Transport Rail Technologies India Limited underscores the importance of understanding the provisions for condonation of delay in filing appeals. While adherence to statutory timelines is crucial, the law also recognizes instances where genuine reasons prevent timely action. This decision by the AAAR reaffirms the principle of fairness in tax adjudication, ensuring that parties are not unduly penalized for circumstances beyond their control.