2023 (11) TMI 1011 - HC - GST

Condonation of delay of 59 days in filing appeal before the Appellate Authority - appeal preferred beyond the period of one month as prescribed under Section 107(1) of KGST Act, 2017 - HELD THAT - Under the KGST Act, the appeal under Section 107 has to be preferred within 60 days. After expiry of 60 days, the appellate authority has discretion for an additional period of 30 days. In the event sufficient reasons are assigned by the aggrieved party, it is well within the jurisdiction of the appellate authority to condone the delay. In the present case on hand, there is no dispute that appeal is filed after expiry of 60 30 days. The statutory provision governing the right of an appeal under Section 107 clearly leads to an inference that Tribunal lacks jurisdiction to condone the delay after 60 30 days. The appellate authority was justified in refusing to condone the delay. he question that requires consideration is, as to whether this court is bound to follow the principles laid down by Division Bench in an unreported judgment in the case of Simplex Infrastructures 2022 (1) TMI 761 - KARNATAKA HIGH COURT . If the State is placing reliance on the judgment of the Apex Court then this court cannot rely on an unreported judgment rendered by Division Bench. In the hierarchy of courts, the law declared by the Apex Court under Article 141 is binding on all the courts within the territory of India. The Constitutional courts while exercising discretion under Article 226 do not have liberty under this rule of discipline, to take a different view or to rely upon supposedly conflicting decisions, where Apex Court has laid down clear law on the subject. The High Courts are not to contradict the law declared by the Apex Court. If under Section 107, an appeal has to be preferred within a period of 60 days with additional period of 30 days, it was well within the jurisdiction of respondent No. 2-appellate authority to dismiss the appeal only on the count of delay. The judgment rendered by Division Bench of this court in the case of Simplex Infrastructures does not come to the aid of the petitioner herein, as the appellate authority lacks jurisdiction to condone the delay. The period prescribed under Section 107 cannot be condoned under Article 226 of the Constitution of India. Petition dismissed.

Summary

Issues involved:
The appeal under Section 107 of the Central Goods and Services Tax Act, 2017, delay in filing the appeal, jurisdiction of the appellate authority to condone delay, applicability of judgments by Division Bench and the Apex Court.

Summary:

Issue 1: Appeal under Section 107 of the CGST Act, 2017
The petitioner challenged the order of the appellate authority under Section 107 of the CGST Act, 2017, for declining to entertain the appeal due to delay beyond the prescribed period. The court affirmed the appellate authority's decision based on the judgment in the case of National Spot Exchange Limited Vs Mr. Anil Kohli, emphasizing the importance of adhering to statutory time limits for filing appeals.

Issue 2: Jurisdiction to condone delay
The court highlighted that under the KGST Act, the appellate authority can entertain an appeal within 60 days with an additional 30-day period for valid reasons. However, in this case, the appeal was filed after the expiry of the total 90-day period, leading to the appellate authority's justified decision not to condone the delay.

Issue 3: Applicability of Division Bench judgment
The Division Bench set aside the single judge's order and remitted the matter for fresh consideration based on the principles laid down in Simplex Infrastructures case. However, the court emphasized that while the Division Bench's judgment may be relevant, the court must prioritize following the law declared by the Apex Court, as decisions of the Apex Court are binding on all courts within India.

Conclusion:
The court dismissed the writ petition, stating that the judgment in Simplex Infrastructures case does not allow for condonation of the delay in filing the appeal under Section 107 of the CGST Act, as the statutory time limits cannot be overlooked under Article 226 of the Constitution of India. The court affirmed the importance of upholding the law declared by the Apex Court and maintaining consistency in legal interpretations.