Bikash Nirala vs. The Joint Commissioner Appeals CGST And Cx

Held

The High Court held that the appeal preferred by the petitioner, which was filed during the period from 15.03.2020 till 28.02.2022, could not have been dismissed as time-barred. The Court acknowledged that the petitioner had not filed a formal application for condonation of delay beyond the initial 3 months as per Section 107(1) read with Subsection (4) of the CGST Act, 2017. However, it reasoned that this lapse should not be held against the petitioner because the extended period of 1 month for filing the appeal fell within the period of COVID-related delays as directed to be excluded by the Supreme Court in Suo Motu Writ Petition (Civil) No. 3 of 2020. Consequently, the impugned order of the Joint Commissioner (Appeals) was set aside, and the matter was remanded to the appellate authority to decide the appeal on its merits. The Court explicitly stated that no comments were made on the merits of the case.

Facts

The petitioner, Bikash Nirala, challenged an order of the Joint Commissioner (Appeals) CGST, Ranchi, which dismissed his appeal against the cancellation of his GSTIN registration. The appeal was filed on 25.09.2021, challenging an order dated 14.12.2019. The appellate authority dismissed the appeal as time-barred, noting it was filed beyond the statutory period of 3 months and the additional 1 month for condonation of delay under Section 107(1) & (4) of the CGST Act, 2017. The petitioner failed to present the appeal within the prescribed time frame. The High Court considered the Supreme Court's directions in Suo Motu Writ Petition (Civil) No. 3 of 2020, which extended limitation periods for various proceedings.

Key Issues

1. Whether the appeal filed by the petitioner on 25.09.2021, challenging an order dated 14.12.2019, was barred by limitation under Section 107(1) and (4) of the CGST Act, 2017, considering the period of delay and the Supreme Court's directions regarding extension of limitation due to COVID-19. Petitioner's contention: The petitioner argued that the delay in filing the appeal should be condoned in light of the Supreme Court's orders in Suo Motu Writ Petition (Civil) No. 3 of 2020, which extended the period of limitation for all proceedings from 15.03.2020 up to 28.02.2022. The petitioner contended that the extended period of 1 month for filing the appeal under Section 107(4) fell within this period of COVID-related delays. Respondent's contention: The respondent (revenue) contended that the appeal was filed beyond the statutory period of 3 months and the permissible condonation period of 1 month, and therefore, it was time-barred. The respondent relied on Section 107(1) and (4) of the CGST Act, 2017.