2023 (11) TMI 1014 - HC - GST

Maintainability of appeal - time limitation - appeals have been rejected being barred by period stipulated in sub-section (1) read with sub-section (4) of Section 107 of the OGST/CGST Act - availability of alternative remedy provided under Section 112 of the said Act. HELD THAT - During pendency of these writ petitions, the Ministry of Finance, Department of Revenue (Central Board of Indirect Taxes and Customs) has issued Notification No.53/2023-Central Tax S.O.4767(E) , dated 2nd November 2023, by which it has been notified that taxable persons, who could not file an appeal on or before the 31st day of March, 2023 against the order passed under section 73 or 74 of the Central Goods and Services Tax Act, 2017 by the proper officer within the time period specified in sub-section (1) of section 107 read with sub-section (4) of section 107 of the Act, and the taxable persons whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within the time period specified in section 107, as the class of persons, shall follow certain special procedure for filing appeals in such cases. In view of the aforesaid Notification, the impugned orders, against which the writ petitions are filed, are set aside and the matters are now remanded to the Appellate Authority to proceed with it in accordance with law. Petition disposed off by way of remand.

Summary

Issues Involved:
The judgment addresses the challenge to first appellate orders under the OGST/CGST Act due to the time limitation for filing appeals and the absence of a 2nd appellate Tribunal. It also considers the special procedure for filing appeals outlined in Notification No.53/2023-Central Tax issued by the Ministry of Finance, Department of Revenue.

First Issue - Challenge to First Appellate Orders:
The petitioners invoked Articles 226 and 227 of the Constitution of India to challenge the first appellate orders, which were rejected for being outside the time period specified in the OGST/CGST Act. The absence of a 2nd appellate Tribunal prevented the petitioners from availing the alternative remedy under Section 112 of the Act.

Second Issue - Special Procedure for Filing Appeals:
During the pendency of the writ petitions, Notification No.53/2023-Central Tax was issued, providing a special procedure for taxable persons who could not file an appeal within the specified time period. The notification outlined conditions for filing appeals, including payment requirements and restrictions on refunds until appeal disposal.

Judgment Details:
The High Court, considering the Notification, set aside the impugned orders and remanded the matters to the Appellate Authority for further proceedings in accordance with the law. Petitioners who deposited the full tax amount would have their cases decided on merit, with any refunds subject to the appeal outcome. The writ petitions were disposed of with these observations and directions.