2024 (6) TMI 429 - AAAR - GST

Condonation of delay in filing an appeal under Section 100 (2) of the CGST/TNGST Act, 2017 - HELD THAT - As per Section 100 (2) of the CGST/TNGST Act, 2017, 30 days is the time limit for filing the appeal from the date of receipt of the order. Hence, in the present case, the appeal should have been filed on or before 12.03.2024 as the order was reportedly received by the Appellant on 12.02.2024. They have stated that the reason for delay was due to paucity of staff and also administrative reasons but certainly not wanton or deliberate. The said delay being less than one month, the same is condonable in terms of Section 100 (2) of the CGST/TNGST Act, 2017. Accordingly, the appellant stated that they are a 100% Tamilnadu Government owned Electricity Generation and Distribution Utility, and that they are making a request for condonation of delay of one day in filing the appeal. When the Members requested the authorised representative (AR) to be more specific about the reasons for delay during the personal hearing on 23.04.2024, the AR explained that TANGEDCO, being a 100% Tamilnadu Government owned Electricity Generation and Distribution Utility, they were outside the ambit of indirect tax compliance matters including Central Excise, Service Tax, VAT, etc., in the past. Even after the introduction of GST, TANGEDCO was not having a dedicated cell of office staff for indirect taxation, as Transmission or distribution of electricity by an electricity transmission or distribution utility, stood exempted. Only after 3 to 4 years of the introduction of CST, when issues started cropping up in GST related matters, a cell with minimal staff to attend to indirect tax compliance was reported to be formed. The delay of one day beyond the normal time limit in filing the appeal is condonable as provided under the proviso to Section 100 (2) of CGST Act, 2017 - this authority is empowered vide Section 101 (1) of the CGST /TNGST Acts, 2017 to pass such orders as deemed fit. The delay in filing the appeal by the appellant beyond the normal time Limit of 30 days is condoned in terms of proviso to Section 100 (2) of CGST/TNGST Act, 2017, and the appeal will be taken up for consideration on merits. COD application allowed.

Summary

Issues involved:
The judgment by the Appellate Authority for Advance Ruling, Tamil Nadu, involves the condonation of delay in filing an appeal under Section 100 (2) of the CGST/TNGST Act, 2017.

Issue 1: Condonation of Delay
The Appellant, a State Government entity involved in electricity generation and distribution, filed an appeal against an Advance Ruling regarding GST on various charges related to electricity distribution. The Appellant sought condonation of a one-day delay in filing the appeal, citing reasons of staff shortage and administrative issues. The Appellate Authority considered the provisions of Section 100 (2) of the Act and the sufficiency of the cause for the delay. The Authority found that the delay was justifiable due to the Appellant's unfamiliarity with indirect tax compliance matters and the formation of a new cell for such purposes. The Authority, empowered under Section 101 (1) of the Acts, decided to condone the delay and proceed with the appeal on its merits.

Issue 2: Merits of the Appeal
The Appellant contested the ruling that certain charges were exempt from GST, arguing that these services were ancillary to electricity transmission and distribution and should be considered part of a composite supply with the principal supply of electricity. The Appellate Authority noted the Appellant's grounds of appeal and the need to address the condonation of delay before discussing the case's merits. The Authority conducted a personal hearing where the Appellant's representative explained the reasons for the delay, emphasizing the lack of staff and prior experience in indirect tax matters. After careful consideration, the Authority found the delay to be justifiable and in compliance with the proviso to Section 100 (2) of the Acts. The Authority ordered the condonation of the delay and proceeded to consider the appeal on its substantive aspects.

Conclusion:
The judgment by the Appellate Authority for Advance Ruling, Tamil Nadu, addressed the issue of condonation of delay in filing an appeal under the CGST/TNGST Act, 2017. The Authority found the reasons provided by the Appellant for the delay to be sufficient and in compliance with the statutory provisions, leading to the condonation of the delay and the continuation of the appeal process on its merits.