2024 (3) TMI 112 - HC - GST

Condonation of delay in filing appeal - Imposition of penalty and interest under Section 73(9) and Section 73(7) of the Central Goods and Services Tax Act, 2017 - HELD THAT - Under Section 107 of the CGST Act, the Appellate Authority does not have the power to condone delay beyond 120 days. In this case, the period of further delay is only 24 days and the petitioner has provided cogent reasons to explain such delay. It is pertinent to note that the petitioner has paid the entire tax liability and the proposed appeal is limited to penalty and interest. Therefore, the Appellate Authority is directed to receive and dispose of the appeal on merits if the appeal is received within a maximum period of ten days from the date of receipt of a copy of this order. Petition disposed off.

Summary

Issues involved: Challenge to order imposing penalty and interest u/s 73(9) and 73(7) of the CGST Act, 2017. Delay in filing appeal due to health reasons.

The petitioner challenged the order dated 14.08.2023 regarding the imposition of penalty and interest u/s 73(9) and 73(7) of the CGST Act. The petitioner cited health issues, specifically being diagnosed with septic shock, as the reason for the delay in filing the appeal within the stipulated 90 days. The appeal, which should have been filed by 16.12.2023, could not be submitted in time due to health-related constraints. The Appellate Authority's power to condone delay beyond 120 days u/s 107 of the CGST Act was highlighted, with the petitioner providing valid reasons for the 24-day delay in this case. Notably, the petitioner had already settled the entire tax liability, with the appeal focusing solely on penalty and interest matters.

The High Court directed the Appellate Authority to accept and address the appeal on its merits if submitted within ten days from the receipt of the court's order. The court disposed of the case with no costs incurred, and the related miscellaneous petition was subsequently closed.