2021 (4) TMI 1314 - HC - GST

Maintainability of petition - time limitation - appeal was dismissed while observing that the same has not been filed within stipulated period as prescribed under Section 107 (1) of Central Goods and Services Tax Act, 2017 - opportunity of hearing to the present petitioner not provided - HELD THAT - From perusal of impugned order dated 20.03.2020 (Annexure P/1) shows that the appeal was preferred by the petitioner on 16.03.2020 and the same has been dismissed on 20.03.2020. The order does not reflect that any opportunity of hearing was afforded to the present petitioner to produce material to explain delay and, therefore, apparently the appeal has been dismissed within a short period of 4 days. Thus, since prima-facie the order impugned appears to have been passed in violation of principle of natural justice, without commenting on merits of the case, it is deemed proper to quash the order impugned dated 20.03.2020 and remit the matter to the Appellate Authority to consider and decide the petitioner s explanation pertaining to condonation of delay - petition allowed by way of remand.

Summary

Issues:
Challenge to dismissal of appeal under Section 107 of Goods and Services Tax Act on the ground of limitation without opportunity of hearing, violation of principles of natural justice and audi alteram partem.

Analysis:
The petitioner challenged the order dated 20.03.2020 dismissing their appeal under Section 107 of the Goods and Services Tax Act for being time-barred. The petitioner contended that the appeal was dismissed within 4 days without granting an opportunity of hearing. The original orders were passed on 01.11.2019 and 08.12.2019, and the appeal was filed on 16.03.2020. The petitioner argued that the dismissal violated the principles of natural justice and audi alteram partem.

The respondent, on the other hand, argued that the petitioner's explanation for the delay of 17 days was insufficient as it was briefly mentioned in the memorandum of appeal. The respondent contended that a detailed explanation for each day of delay was required, which the petitioner failed to provide adequately.

After hearing both parties, the court noted that the impugned order showed that the appeal was filed on 16.03.2020 and dismissed on 20.03.2020 without affording the petitioner an opportunity to explain the delay. The court observed that the order seemed to have been passed in violation of the principle of natural justice.

Therefore, the court decided to quash the order dated 20.03.2020 and remit the matter to the Appellate Authority. The Appellate Authority was directed to consider the petitioner's explanation for the delay mentioned in the memorandum of appeal and then pass a speaking order within 2 months from the date of receipt of the court's order. The court disposed of the writ petition with these observations.