2024 (2) TMI 794 - HC - GST

Rejection of appeal on the ground of time limitation - whether the appellate authority had power to condone a delay of thirty days over and above the prescribed three month limitation period? - HELD THAT - The assessment order was issued on 10.05.2023. Section 107(1) of the TNGST Act prescribes a limitation period of three months from the date of receipt of the order. Under sub-section (4) thereof, the appellate authority is empowered to condone delay of up to one month if sufficient cause is shown. The present appeal was filed by the petitioner before the appellate authority on 11.09.2023. Since this exceeds the thirty day period prescribed in sub-section (4), the appellate authority cannot be faulted for rejecting the appeal. Nonetheless, the petitioner presented the appeal on 11.09.2023 and made the requisite pre-deposit. Apart from asserting that the petitioner was unaware about the show cause notice and assessment order, significantly, the petitioner has placed on record the death certificate of his mother and the said certificate indicates that she died on 11.08.2023. In these circumstances, without intending to establish a precedent in such matter, the petitioner should be provided an opportunity to prosecute the appeal. The impugned order is quashed and the first respondent is directed to receive and dispose of the petitioner's appeal on merits - Petition allowed.

Summary

Issues involved: Appeal rejection on grounds of being time-barred under GST laws.

Summary:
The petitioner, a registered person under GST laws, filed an appeal challenging an assessment order dated 10.05.2023 after being informed orally about it on 10.09.2023. The appellate authority rejected the appeal as time-barred, citing the expiry of the three-month filing period on 09.08.2023 and the thirty-day condonation period on 09.09.2023. The petitioner, facing a substantial liability of Rs. 17,36,136, sought condonation of the delay due to the death of his mother on 11.08.2023, supported by the death certificate. The Additional Government Pleader argued that the appellate authority had the power to condone a delay of thirty days beyond the three-month limitation period, justifying the rejection of the appeal.

The High Court acknowledged the undisputed facts that the appeal was filed on 11.09.2023, exceeding the prescribed thirty-day condonation period under Section 107 of the TNGST Act. However, considering the circumstances, including the petitioner's lack of awareness about the notice and the death of his mother, the Court directed the appellate authority to receive and decide the petitioner's appeal on merits, quashing the impugned order. The Court emphasized that this decision should not serve as a precedent but was made to provide the petitioner with an opportunity to pursue the appeal effectively. The writ petition was allowed with no costs incurred, and the related miscellaneous petition was closed.