Prashant Luthra, Director, Brite Neon Signs PVT. LTD. vs. State Of Bihar

Held

The Court held that while the petitioner had not filed an appeal within the original statutory period and the writ petition itself was delayed, the recent Notification No. 53 of 2023-Central Tax provides a mechanism for filing delayed appeals against orders passed under Sections 73 and 74 of the BGST Act. The Court directed that the petitioner would be entitled to satisfy the conditions stipulated in paragraph 3 of the said Notification. These conditions include paying in full the admitted portion of tax, interest, fine, fee, and penalty, and depositing 12.5% of the remaining disputed tax amount (subject to a maximum of twenty-five crore rupees), with at least 20% of this 12.5% to be debited from the Electronic Cash Ledger. The Court further stated that an appeal filed by the petitioner satisfying these conditions by the stipulated deadline of 31.01.2024 would be taken up and considered on its merits. The Court disposed of the writ petition on these terms, effectively allowing the petitioner to file a belated appeal subject to compliance with the notification's requirements.

Facts

The petitioner, Prashant Luthra, Director of Brite Neon Signs Pvt. Ltd., approached the Patna High Court seeking to quash an order dated 08.12.2021 passed under Section 73(9) of the Bihar Goods and Services Tax Act, 2017 (BGST Act). The petitioner had not filed an appeal against this order within the statutory period provided under Section 107(4) of the BGST Act, which allows for an appeal within three months, extendable by one month with condonation of delay. The writ petition itself was filed almost one year after the order. The Court noted that neither the Appellate Authority nor the High Court under Article 226 can condone delays beyond the statutory period. However, a recent notification (Notification No. 53 of 2023-Central Tax) extended the time for filing appeals against orders passed under Sections 73 and 74 of the BGST Act on or before 31.03.2023.

Key Issues

1. Whether the petitioner can file an appeal against the order dated 08.12.2021 under the BGST Act, given the delay in filing and the statutory time limits prescribed under Section 107(4) of the BGST Act? 2. Whether the benefit of Notification No. 53 of 2023-Central Tax, dated 02.11.2023, can be availed by the petitioner to file a delayed appeal, and if so, what are the conditions precedent for such an appeal? Petitioner's Contention: The petitioner sought to quash the impugned order and implicitly relied on the possibility of filing an appeal, especially in light of the subsequent notification providing for extended timelines. The petitioner's counsel appeared, indicating an intention to pursue relief. Revenue's Contention: The revenue, represented by the State of Bihar through the Commissioner of State Tax and other authorities, did not explicitly record any arguments against the petitioner's plea for availing the benefit of the notification. However, the Court's reasoning implies that the revenue's position would be subject to the conditions laid down in the notification.