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2024 (8) TMI 955 - HC - GSTJurisdiction - competence of Appellate Authority under Subsection (4) of Section 107 of the Act of 2017 to condone the delay in filing an appeal against a decision or order passed under the Act by an adjudicating authority beyond a period of one months after the expiry of three months period prescribed for filing appeal under Subsection (1) of Section 107 of the Act of 2017. HELD THAT - Reliance placed in the decision of BENGAL CHEMISTS AND DRUGGISTS ASSOCIATION VERSUS KALYAN CHOWDHURY 2018 (2) TMI 487 - SUPREME COURT , Hon ble the Supreme Court again considered the same question in the light of Section 421(3) of the Companies Act, 2013, which prescribed a period of forty five days for filing an appeal from the orders of the Tribunal. The proviso appended to Subsection (3), however, conferred discretion on the appellate tribunal to entertain the appeal even after expiry of said period of forty five days provided it was satisfied that the appellant was prevented by sufficient cause for filing the appeal within that period. However, the discretion to condone the delay was restricted to a period not exceeding forty five days after the expiry of the prescribed period of limitation. The question raised in these appeals is answered in favour of the respondents and against the appellant(s) and it is held that the appellate authority cannot entertain an appeal under Section 107 of the Act of 2017 against a decision or order of the adjudicating authority, if it is filed beyond the period of four months from the date such decision or order is communicated to the person aggrieved. The periods of limitation are procedural in nature. Therefore, the prohibition contained in Section 107(4) of the Act of 2017 to condone delay beyond one month cannot come in the way of Constitutional Court exercising extraordinary jurisdiction to render substantial justice. Therefore, while a statutory prohibition is a strong consideration to be kept in mind, yet it does not bar the jurisdiction of the High Court to condone the delay if it is of the opinion that application of delay barring statute would result in gross injustice. Each case is, thus, required to be evaluated on its specific facts and circumstances. The reasons put forth by the petitioner for seeking condonation of delay are only ipsi dixit of the petitioner and do not bring the case of petitioner under exceptional circumstances warranting exercise of extraordinary jurisdiction by this Court to condone the delay - all these writ petitions are found to be without merit, hence dismissed.
Issues Involved:
1. Maintainability of petitions under Article 226 of the Constitution of India. 2. Applicability of Section 5 of the Limitation Act to the appeals filed under Section 107 of the Jammu & Kashmir Goods and Services Tax Act, 2017. 3. Competence of the Appellate Authority to condone delay beyond the period prescribed under Section 107(4) of the Act of 2017. 4. Exercise of extraordinary jurisdiction by the High Court under Article 226 to condone delay despite statutory prohibition. Detailed Analysis: 1. Maintainability of Petitions under Article 226 of the Constitution of India: The petitioners, being aggrieved by the rejection of their appeals due to delay, invoked the extraordinary writ jurisdiction of the High Court under Article 226 of the Constitution of India. The High Court acknowledged its power to issue writs for enforcement of fundamental rights and for any other purpose, emphasizing that this provision gives the High Court wide discretionary power to ensure justice. 2. Applicability of Section 5 of the Limitation Act to Appeals Filed under Section 107 of the Act of 2017: The core issue was whether the Appellate Authority under Section 107(4) of the Act of 2017 could condone the delay beyond the period of one month after the expiry of the three-month period prescribed for filing an appeal. The petitioners argued that in the absence of specific exclusion of the Limitation Act, Section 29 of the Limitation Act would apply, allowing the Appellate Authority to condone the delay beyond four months by exercising its jurisdiction under Section 5 of the Limitation Act. 3. Competence of the Appellate Authority to Condon Delay Beyond the Period Prescribed under Section 107(4) of the Act of 2017: The court held that Section 107 of the Act of 2017 is a complete code in itself. Subsection (4) of Section 107 explicitly restricts the Appellate Authority's discretion to condone the delay only for a maximum period of one month beyond the prescribed three months. The court concluded that Section 5 of the Limitation Act is expressly excluded by the scheme of the Act of 2017. This view was supported by precedents from the Supreme Court, including the case of Singh Enterprise v. Commissioner of Central Excise, Jamshedpur, which dealt with similar provisions under the Central Excise Act, 1944. 4. Exercise of Extraordinary Jurisdiction by the High Court under Article 226 to Condon Delay Despite Statutory Prohibition: The High Court acknowledged that while statutory prohibition is a strong consideration, it does not bar the High Court's jurisdiction under Article 226 to condone the delay in exceptional cases. The court emphasized that procedural laws should not cause miscarriage of justice and that each case must be evaluated on its specific facts and circumstances. However, the court found that the petitioners in the present cases did not make out a case of exceptional nature warranting the exercise of extraordinary jurisdiction to condone the delay. Case-by-Case Analysis: WP(C) No.1413/2024: The appeal was filed five months and twenty-two days after the order was communicated. The petitioner cited severe ill health and failure of the accountant to convey the notice. The court found no exceptional circumstances or sufficient evidence to condone the delay. WP(C) No.1259/2024: The appeal was filed seven months and one day after the order was communicated. The petitioner claimed to have learned of the order only in February 2024. The court found no exceptional circumstances or legal disability preventing timely filing. WP(C) No.2268/2023: The appeal was filed six months and eighteen days after the order was communicated. The petitioner cited medical reasons for being out of the state but provided no documentary evidence. The court found no exceptional circumstances. WP(C) No.1086/2024: The appeal was filed four months and eleven days after the order was communicated. The petitioner cited difficulties understanding GST provisions and Covid-19 lockdown. The court found no exceptional circumstances. WP(C) No.1080/2024: Similar to WP(C) No.1086/2024, the appeal was filed four months and eleven days after the order was communicated with the same reasons. The court found no exceptional circumstances. WP(C) No.1099/2024: The appeal was filed five months and nine days after the order was communicated. No specific reasons were given for the delay. The court found no exceptional circumstances. WP(C) No.1336/2024: The appeal was filed ten months and twenty-one days after the order was communicated. No reasons were provided for the delay. The court found no exceptional circumstances. WP(C) No.2543/2023: The appeal was filed six months and twenty-six days after the order was communicated. The petitioner cited illness but provided no substantial evidence. The court found no exceptional circumstances. WP(C) No.1372/2024: The appeal was filed six months after the order was communicated. The petitioner cited communication gaps with the consultant. The court found no exceptional circumstances. WP(C) No.1292/2024: The appeal was filed four months and twenty-five days after the order was communicated. The petitioner cited health problems and the death of his father but provided no supporting documents. The court found no exceptional circumstances. WP(C) No.1204/2024: The appeal was filed six months and eight days after the order was communicated. No reasons were provided for the delay. The court found no exceptional circumstances. WP(C) No.1210/2024: The appeal was filed four months and twenty days after the order was communicated. The petitioner cited his son's health problems but provided no specific dates or evidence. The court found no exceptional circumstances. Conclusion: The High Court dismissed all the writ petitions, holding that the appeals were time-barred and that the petitioners did not make out a case of exceptional nature warranting the exercise of extraordinary jurisdiction to condone the delay despite statutory prohibition.
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