2023 (10) TMI 413 - HC - GST

Condonation of delay of 9 months in filing appeal - time limitation - principles of natural justice - HELD THAT - Considering the facts and circumstances of the case and the specific averments made in the writ petition show bona fide of the petitioner company and in the interest of natural justice and that the impugned adjudication order was passed ex parte and that the delay in filing the appeal was also due to laches and lapse of its tax consultant which is unprofessional conduct of the tax consultant and though the assessee should also been be vigilant and diligent about its legal rights after all it is a company having service of tax professional and experts but still in the interest of justice and in view of the statement made by the petitioner that petitioner is ready and willing to pay a cost of Rs.5 lakhs to the authority concerned for condonation of delay in filing the appeal before the first appellate authority, the impugned orders of the appellate authority dated 20th April, 2023 are set aside. Since the impugned adjudication orders were passed ex partee may be due to lapse or fault on the part of the petitioner s tax consultant, matter should be remanded back to the adjudicating authority concerned, accordingly, the impugned adjudication orders dated 12th March, 2022 are also set aside - Petition disposed off.

Summary

Issues:
The issues involved in this case are the challenge against impugned orders in original dated 12th March, 2022, and the impugned orders of the appellate authority dated 20th April, 2023, on the ground of inordinate delay of 9 months.

Impugned Adjudication Orders and Delay in Filing Appeals:
The petitioner challenged the impugned adjudication orders due to them being ex parte, attributing the delay in participating in the proceedings and filing the appeals to the lapse and laches of the petitioner's tax consultant. The consultant failed to inform the petitioner about show-cause notices and subsequent orders, resulting in the confirmation of tax demands. The petitioner, a company, was unaware of these proceedings until later, leading to recovery notices being issued to debtors. Despite the duty of the company to be diligent, the Court considered the lapse of the tax consultant as unprofessional conduct and accepted the petitioner's readiness to pay a cost of Rs.5 lakhs for condonation of delay.

Decision and Remand:
In light of the facts presented, the Court set aside the impugned orders of the appellate authority and the adjudication orders. The matters were remanded back to the adjudicating authority for fresh adjudication orders within six weeks, subject to the petitioner making a deposit of 20% of the disputed tax and paying the cost of Rs.5 lakhs for condoning the delay. The petitioner agreed to make these payments within two weeks and provide proof of payment. The Court emphasized that this decision was based on exceptional circumstances and should not be considered a precedent, urging timely adjudication without unnecessary adjournments.

This writ petition, WPA 23005 of 2023, was disposed of with the above observations and directions.