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TMI Blog2023 (8) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... d. As against this when delay is condoned the highest that can happen is that a cause would be decided on merits after hearing the parties. While considering the application for condonation of delay, it is not the length of the delay, but cause for delay which would be paramount consideration. If the cause shown as indicated under Section 107(4) of the act, such delay deserves to be condoned irrespective of the length of the delay. It does not mean that the learned Commissioner (Appeals) can condone the delay beyond the condonable period that is one month after expiry of three months after statutory period of three months. As seen from the order impugned, the learned Commissioner opined that the reasons are not convincing. Pertinent to say that, the learned Commissioner never denied about freezing of bank account of the petitioner and about issuing of notices to the purchasers who are yet to pay consideration to the petitioner - In this context it is necessary to refer Section 107 (6) which is vivid on the point of deposit of 10% of the disputed tax which is mandatory at the time of filing of the appeal. When the bank account of the petitioner is freezed by the authorities, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. (c) The entire business transactions have come to a grinding halt due to the provisional attachment orders issued to the banks as well as to the dealers to whom he has supplied goods and yet to receive the consideration. (d) Respondent No. 2 rejected the appeal on untenable grounds vide impugned Order dated 03.06.2023, since the Appellate Tribunal is yet to be constituted, petitioners approached this Court challenging the impugned order passed by the respondent No. 2. 5. Learned counsel for the petitioner would submit that though the petitioner preferred appeal within condonable period of limitation, the Appellate Authority rejected the appeal without considering the genuine reason for the petitioner filing appeal with delay and passed the impugned Order, which is not tenable under law. Though it is the discretion of the appellate authority to condone the delay, discretion has to be exercised judiciously. The petitioner s bank accounts were frozen, notices issued to the dealers to whom he has supplied the goods and yet to receive the consideration. Learned Appellate Authority ought to have considered the reason for the delay since he was prevented by sufficient cau ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application. (4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month. (5) Every appeal under this section shall be in such form and shall be verified in such manner as may be prescribed. (6) No appeal shall be filed under sub-section (1), unless the appellant has paid (a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and (b) a sum equal to ten per cent of the remaining amount of tax in dispute arising from the said order, (subject to a maximum of twenty-five crore rupees), in relation to which the appeal has been filed. Provided that no appeal shall be filed against an order under sub section (3) of the Section 129, unless a sum equal to twenty five percent of the penalty has been paid by the appellant. (7) Where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted is clearly mentioned under Section 107 (4). 12. In Penuel Nexus Pvt. Limited Vs. Additional Commissioner Head Quarters (Appeals) 2023 SCC Online Ker 4243 Kerala High Court. While interpreting Section 107 (4) observed the Central Goods and Services Tax Act is a special statute and a self-contained code by itself, and Section 107 thereof is an inbuilt mechanism and has impliedly excluded the application of the Limitation Act. It is trite, that the Limitation Act will apply only if it is extended to the special statute. It is also rudimentary that the provisions of a fiscal statute have to be strictly construed and interpreted . 13. While considering the application for condonation of delay, it is not the length of the delay, but cause for delay which would be paramount consideration. If the cause shown as indicated under Section 107(4) of the act, such delay deserves to be condoned irrespective of the length of the delay. It does not mean that the learned Commissioner (Appeals) can condone the delay beyond the condonable period that is one month after expiry of three months after statutory period of three months. 14. However, if the cause shown is not with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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