Sri Durga Vengamamba Timber Depot vs. The State Of Ap

Held

The Court considered the submissions of both parties and the Notification No. 53/2023 - Central Tax, dated November 2, 2023. This notification allows taxable persons who could not file an appeal against an order passed under Section 73 or 74 of the CGST Act, 2017, within the prescribed time, to file an appeal on or before January 31, 2024, subject to fulfilling specific conditions. These conditions include paying the admitted portion of tax, interest, fine, fee, and penalty, and 12.5% of the disputed tax amount, with at least 20% of that amount paid from the Electronic Cash Ledger. The Court noted that the Government Pleader did not dispute the applicability of this notification. Therefore, the Court disposed of the writ petition, granting the petitioner liberty to approach the appellate authority by complying with the terms and conditions of the notification dated November 2, 2023, in accordance with the law. No costs were ordered. The issue of the assessment order's legality was not directly decided but was rendered moot by the opportunity to appeal.

Facts

The petitioner, M/s. Sri Durga Vengamamba Timber Depot, filed a writ petition challenging an assessment order in Form DRC-07 dated March 27, 2019, passed by the Assistant Commissioner(ST), Bhavanipuram Circle. This order pertained to the tax period from July 1, 2017, to May 22, 2018, and levied CGST and SGST of Rs. 14,05,924/- each, along with a penalty of Rs. 14,05,924/- each for CGST and SGST, totaling Rs. 56,23,696/-. The petitioner sought to declare this action illegal, arbitrary, without authority of law, and void ab initio. The petitioner also sought a stay on recovery proceedings. The Government Pleader for Commercial Tax did not dispute the petition and submitted that it could be decided finally considering a recent notification.

Key Issues

1. Whether the action of the 2nd respondent in passing the assessment order in Form DRC-07 dated 27-03-2019, for the tax period 01-07-2017 to 22-05-2018, levying tax and penalty totaling Rs. 56,23,696/-, is illegal, arbitrary, without authority of law, and without jurisdiction, as contended by the petitioner. Petitioner's Argument: The petitioner argued that the assessment order was illegal and sought its setting aside. They relied on Notification No. 53/2023 - Central Tax, dated November 2, 2023, which provides a special procedure for filing appeals against orders passed under Sections 73 or 74 of the Central Goods and Services Tax Act, 2017, even if the appeal period has expired, subject to certain conditions. Revenue's Argument: The learned Government Pleader for Commercial Tax did not dispute the applicability of the notification and submitted that the writ petition could be decided finally considering it.