Shree Krishna Bhandar vs. Addl. Commissioner Of State Tax (Appeal)

Held

The Court quashed and set aside both the order dated 28.05.2019 passed by the Joint Commissioner of State Tax and the order dated 29.11.2019 passed by the Additional Commissioner of State Tax (Appeal). The reasoning was primarily based on the explanation provided by the petitioner for the delay in filing the appeal, which was due to the non-preparation of the certified copy. The Court found this explanation to be acceptable. The ratio decidendi is that if a delay in filing an appeal is sufficiently explained, especially due to administrative delays in obtaining certified copies, the appellate authority should not dismiss the appeal in limine but should consider the merits of the case. The operative directions included restoring the appeal to its original number and status, affording parties an opportunity to file additional material within two weeks, and directing the appellate authority to decide the issue of limitation afresh. If the appeal is found to be within the period of limitation, it is to be heard and decided on merits by 31st March, 2021. All other issues were left open for adjudication by the authority below.

Facts

The petitioner, Shree Krishna Bhandar, challenged two orders. The first, dated 28.05.2019, was passed by the Joint Commissioner of State Tax (Respondent No. 2) under Section 73 of the Bihar Goods and Services Tax Act, 2017, denying set off of transitional credit. A show cause notice dated 01.06.2019 was also issued by Respondent No. 2 under the same section. The second impugned order, dated 29.11.2019, was passed by the Additional Commissioner of State Tax (Appeal) (Respondent No. 1), dismissing the petitioner's appeal in limine solely on the ground of delay in filing. The petitioner sought to quash these orders. The delay in filing the appeal was attributed to the non-preparation of a certified copy.

Key Issues

1. Whether the order dated 28.05.2019 passed by the Joint Commissioner of State Tax under Section 73 of the Bihar Goods and Services Tax Act, 2017, denying set off of transitional credit, is liable to be quashed? The petitioner argued that this order should be quashed. 2. Whether the show cause notice dated 01.06.2019 issued by the Joint Commissioner of State Tax under Section 73 of the Bihar Goods and Services Tax Act, 2017, is liable to be quashed? The petitioner contended that this notice should be quashed. 3. Whether the order dated 29.11.2019 passed by the Additional Commissioner of State Tax (Appeal) dismissing the appeal in limine on the ground of delay is liable to be quashed? The petitioner argued that the delay was sufficiently explained due to the non-preparation of the certified copy, and therefore, the dismissal in limine was erroneous. The respondents did not record any specific arguments on these issues, but the Court considered the explanation for the delay.