Bhattad Industries PVT. LTD. Through Director Shekhar Bhattad vs. State Of Maharashtra Through Finance Secretary, And Anr

Held

The Court held that the petitioner could take recourse to the alternate remedy of an appeal before the GST Tribunal as provided in the Circular dated May 26, 2020. Specifically, the Court permitted the petitioner to act in terms of paragraph 4.3 read with paragraph 5 of the circular. This means the petitioner must submit a declaration to the jurisdictional Tax Officer, stating their intention to file an appeal under Section 112 of the CGST Act, within 15 days from the date of the current order. The Court reasoned that this approach, guided by the circular and precedent, would address the limitation concerns arising from the non-constitution of the Tribunal. The Court expressly kept open all contentions of the parties on merits for the proposed proceedings before the Tribunal. No specific finding was made on the merits of the original order under challenge.

Facts

The petitioner, Bhattad Industries Pvt. Ltd., filed a writ petition challenging an order dated June 26, 2023, passed by the Divisional Authority. The petitioner's primary recourse was to file an appeal before the GST Tribunal as per Section 112 of the CGST Act. However, the GST Tribunal had not yet been constituted. The petitioner sought to address the potential issue of limitation in filing such an appeal once the Tribunal is established. They relied on a circular dated May 26, 2020, issued by the Commissioner of State Tax, which provided a mechanism for such situations, and a coordinate bench's order in a similar case.

Key Issues

1. Whether the petitioner can avail the alternate remedy of appeal before the GST Tribunal, given its non-constitution, without being prejudiced by the limitation period? (Question of law, concerning the interpretation and application of Section 112 of the CGST Act and the relevant circular). Petitioner's arguments: The petitioner argued that the circular dated May 26, 2020, provides a clear procedure to address the situation where the GST Tribunal is not constituted. They contended that paragraph 4.3 of the circular clarifies that the time limit for filing an appeal to the Appellate Tribunal would be counted from the date the President or State President enters office. Furthermore, paragraph 5 mandates a declaration to be filed within 15 days of the order communication, proposing to file an appeal under Section 112. They also referred to a coordinate bench's order in Gulf Oil Lubricants India Ltd. Vs. Joint Commissioner of State Tax (Appeal -V) , Mumbai, which permitted recourse to the Appellate Tribunal, obviating limitation issues. Revenue/State's arguments: The judgment does not record any specific arguments made by the respondents-State.