Nexus Motors Private Limited vs. The State Of Bihar

Held

The Court held that while Section 107(4) of the B.G.S.T. Act and Article 226 do not ordinarily grant power to extend the period of limitation for filing appeals, the issuance of Notification No. 53/2023-Central Tax provided a special procedure. The Court found no rationale for the March 31, 2023, cut-off date in the notification, considering it was issued on November 2, 2023. Therefore, the Court was of the opinion that the petitioner should also be allowed to comply with the conditions stipulated in Notification No. 53/2023. Upon compliance, the appellate order would be set aside, and the First Appellate Authority would reconsider the appeal afresh. The petitioner was directed to fulfill all criteria as stated in the notification. The issue of whether the Appellate Authority or a Constitutional Court has inherent power to extend limitation beyond statutory provisions was implicitly addressed by allowing the petitioner to benefit from the notification, thus bypassing the strict interpretation of Section 107(4).

Facts

The petitioner, Nexus Motors Private Limited, challenged an order by the Additional Commissioner of State Tax (Appeal) that rejected their appeal due to a delay of five days. The original order was passed by the Assistant Commissioner of State Tax on April 27, 2023. Section 107(4) of the B.G.S.T. Act prescribes a period of three months for filing an appeal, with an additional one month for delayed appeals. The petitioner's appeal was filed beyond this stipulated period. The petitioner approached the High Court under Article 226, seeking relief against the appellate order. The Court noted a subsequent notification, No. 53/2023-Central Tax, dated November 2, 2023, issued by the Central Board of Indirect Taxes and Customs, which provided a special procedure for filing appeals.

Key Issues

1. Whether the Appellate Authority or a Constitutional Court has the power to extend the period of limitation for filing an appeal under Section 107(4) of the B.G.S.T. Act, especially when a specific period for delayed appeals is prescribed. 2. Whether the petitioner, whose original order was passed on April 27, 2023, is eligible to avail the benefits of Notification No. 53/2023-Central Tax, dated November 2, 2023, which allows appeals for orders passed on or before March 31, 2023. Petitioner's arguments: The petitioner contended that the appellate order rejecting their appeal solely on grounds of delay was unsustainable. They relied on Notification No. 53/2023-Central Tax, arguing that it provided a mechanism for condoning delays and filing appeals, and that the cut-off date of March 31, 2023, was arbitrary. They sought to be allowed to comply with the conditions of the notification. Respondent's arguments: The respondents, represented by the State of Bihar, argued that the appeal was filed beyond the statutory period prescribed under Section 107(4) of the B.G.S.T. Act, and that the Appellate Authority had no power to condone such a delay. They also pointed out that the petitioner's order was passed after the cut-off date specified in the notification.