Important Judgment of High Court: Beware of time limit for filing appeal under GST law against GST order passed by GST Authority
Appeal under GST
Any appeal under GST is an application to a higher court for a reversal of the decision of a lower court. Appeals arise when there are any legal disputes. A strong appeal under GST mechanism is in case when,
- A person is hurt by any decision or order passed against him.
- Any person hurt by any decision; or an order is passed against him under this Act by an adjudicating authority may appeal to the prescribed First Appellate Authority.
Time limit for filing appeal
Every appeal under GST shall be filed within 3 months from the date on which the decision or order sought to be appealed against is communicated to the Commissioner of GST, or the person preferring the appeal.
The First Appellate Authority may allow an appeal to be presented within a further period of one month (30 Days) if he is satisfied that the appellant was prevented by reasonable cause from presenting the appeal within the aforesaid period of 3 months.
High Court Judgment
Case of ‘Shanti Eat Udyog Surir Kala v/s State of U.P.’
High Court of Allahabad in case of Shanti Eat Udyog Surir Kala v/s State of U.P held that appeal under GST law cannot be filed beyond the time period mentioned in section 107 of SGST Act.
The Appellate Authority dismissed the appeal filed by the assessee as time-barred.
High Court held that admittedly the period of limitation to file a first appeal under section 107 of SGST is three months and the period for which the delay may be condoned is thirty days from the expiry of the normal period of limitation. Clearly, no application for condonation of delay may have been entertained by the Appellate Authority beyond a period of thirty days from the date of expiry of the normal period of limitation (three months). In the instant case, the first appeal filed by the assessee against the order of the Competent Authority was beyond the period for which delay may have been condoned by about nine days. Consequently, there is no error in the order of the Appellate Authority dismissing the appeal as time-barred.
Further, the assessee then submitted that if the remedy of appeal is held to be non-existent, still jurisdiction of the Writ Court against the original order may not be ousted. In this regard, it has been submitted that the assessee is engaged in the activity of running a brick kiln and the entire production of bricks had been treated to be of first quality bricks which are erroneous. In the very nature of the activity of running that business, various qualities of bricks emerge in the manufacturing process for various reasons. The matter requires consideration.
In the meanwhile, subject to the assessee depositing 50 percent of the disputed amount of tax and furnishing security for the balance amount of disputed tax, further recovery proceedings initiated against the assessee shall remain stayed.