Omkar Ceramic vs. Commissioner Of State Tax

Held

The High Court quashed and set aside the impugned order dated 14.03.2019 passed by the Joint Commissioner of State Tax, Investigation Bureau, Bihar, Patna, noting that the delay in filing the appeal was explained on account of the non-preparation of the certified copy. The Court directed that the petitioner shall approach the appellate authority on 28.12.2020, and a date shall be fixed for further hearing, restoring the matter to its original number and status. Both parties were granted an opportunity to file additional material within two weeks. The appropriate authority was directed to decide the issue of limitation afresh, and if the appeal was found to be within the prescribed period, it was to be heard and decided by 31st March, 2021. The petitioner undertook to cooperate and not seek unnecessary adjournments. All other issues were left open to be adjudicated by the authority below. The ratio decidendi is that a reasonable explanation for delay in filing an appeal, particularly when related to the non-availability of certified copies, should be considered by the appellate authority, and dismissal in limine without such consideration may be set aside.

Facts

The petitioner, Omkar Ceramic, a partnership firm, filed a writ petition challenging a show cause notice dated 21.01.2019 issued by the Joint Commissioner of State Tax, Investigation Bureau, Bihar, Patna, under Section 74 of the Bihar Goods and Services Tax Act, 2017, for the period 2017-18. The petitioner also challenged an order dated 11.03.2019 passed by the same authority under Section 74(9) for the period 2018-19, and a subsequent order dated 20.08.2019 passed by the Additional Commissioner of State Tax (Appeal) dismissing the petitioner's appeal in limine due to delay. The petitioner sought to quash these notices and orders, and a demand notice dated 14.03.2019.

Key Issues

1. Whether the appeal filed before the appellate authority was rightly dismissed in limine on the ground of delay, considering the explanation provided by the petitioner for the delay. This issue turns on the interpretation and application of the provisions related to the limitation period for filing appeals under the Bihar Goods and Services Tax Act, 2017. The petitioner argued that the delay was unintentional and due to the non-preparation of a certified copy, and that the appellate authority ought to have considered this explanation. The revenue contended that the appeal was filed beyond the prescribed period of limitation and the explanation offered was insufficient.