M/S Sperry Plast LTD vs. Union Of INDIA And Ors

Facts

The petitioner, M/s Sperry Plast Ltd., filed a writ petition (CWP-3726-2022) before the Punjab and Haryana High Court challenging an order or action by the revenue authorities. During the pendency of the petition, which was filed in 2022, the competent authority passed an order of assessment dated May 24, 2024. The respondents, Union of India and others, submitted that the petitioner's remedy now lies in filing an appeal under Section 107 of the CGST Act. The petitioner's counsel sought permission to withdraw the petition to file such an appeal but noted that the prescribed period for filing the appeal had expired. The respondents' counsel suggested that the petitioner could seek the benefit of Section 14 of the Indian Limitation Act for filing the appeal.

Held

The Court was informed by the respondents that an order of assessment dated May 24, 2024, had been passed during the pendency of the writ petition. Consequently, the respondents submitted that the petitioner's appropriate remedy was to file an appeal under Section 107 of the CGST Act. The petitioner's counsel, faced with this development, sought permission to withdraw the petition to pursue the appellate remedy. However, the petitioner's counsel also raised a concern that the prescribed period for filing such an appeal had expired. In response, the respondents suggested that the petitioner could seek the benefit of Section 14 of the Indian Limitation Act, given the diligent pursuit of the matter since 2022. The Court, acceding to the petitioner's request, dismissed the petition as withdrawn.

Key Issues

1. Whether the petitioner can avail the remedy of appeal under Section 107 of the CGST Act, given that the prescribed period for filing such an appeal has expired? 2. Whether the petitioner is entitled to seek the benefit of Section 14 of the Indian Limitation Act for filing an appeal after the expiry of the prescribed period? Contentions of the Petitioner: The petitioner sought to withdraw the writ petition to file an appeal under Section 107 of the CGST Act. However, the petitioner's counsel highlighted that the prescribed period for filing this appeal had already expired, posing a procedural hurdle to availing this remedy. Contentions of the Respondents: The respondents argued that the assessment order dated May 24, 2024, has been passed, making the petitioner's remedy an appeal under Section 107 of the CGST Act. They further contended that since the petitioner had been diligently pursuing the matter since 2022, they would be entitled to seek the benefit of Section 14 of the Indian Limitation Act if an appeal were filed.