M/S. Meritas Hotels PVT. LTD. vs. The State Of Maharashtra Thr. Gp And Ors

Held

The Court held that the petitioner failed to avail the remedy of appeal within the prescribed statutory period. The Court reasoned that the communication of the assessment order via email on April 20, 2019, was sufficient for the purpose of commencing the limitation period. The petitioner's belated application for a certified true copy on November 5, 2019, after recovery proceedings were initiated, indicated a failure to act diligently. The Court distinguished the present case from the Gujarat High Court's decision in Gujarat Tate Petronet Limited, noting that in this case, the petitioner received the order by email and only sought a certified copy much later. The Court relied on the Supreme Court's decision in Assistant Commissioner (CT) LTU, Kakinada, to emphasize that a writ petition cannot be entertained if the statutory remedy of appeal is time-barred, unless specific circumstances warranting condonation are present, which were not met here. Therefore, the appellate authority was justified in refusing to entertain the appeal beyond the extended statutory limitation period. The Court found no merit in the writ petition.

Facts

The petitioner, M/s. Meritas Hotels Pvt. Ltd., challenged an assessment order dated April 20, 2019, passed by the Deputy Commissioner of Sales Tax under Section 62 of the Maharashtra Goods and Services Tax Act, 2017. The order imposed a tax liability of Rs. 20,96,888, interest of Rs. 32,502, and penalty of Rs. 23,06,577. The petitioner claimed the order was passed unilaterally without a hearing and that the physical copy was not served nor uploaded on the GSTN portal. They received a scanned copy via email on April 20, 2019, but only became aware of the assessment order when their bank account was attached on July 1, 2019. They applied for a certified true copy on November 5, 2019, and attempted to file a manual appeal on November 20, 2019, which was refused. The order was uploaded on the GSTN portal on January 8, 2020, and an online appeal attempt on January 10, 2020, showed a delay.

Key Issues

1. Whether the period of limitation for filing an appeal under Section 107(1) of the Maharashtra Goods and Services Tax Act, 2017, commences from the date of communication of the assessment order via email (April 20, 2019) or from the date of its upload on the GSTN portal (January 8, 2020)? Petitioner's arguments: The petitioner contended that the assessment order was passed in breach of natural justice, without an opportunity to be heard, and that the refusal to entertain the appeal on grounds of delay was unjustified because the physical order was not served, nor was it initially uploaded on the GSTN portal. They argued that the limitation period should be reckoned from January 8, 2020, the date of upload, making their appeal within time. Alternatively, they argued that a writ petition under Article 226 was maintainable due to the breach of natural justice. Revenue's arguments: The Revenue supported the refusal to entertain the appeal, citing sub-sections (1) and (4) of Section 107 of the Act. They argued that the email communication on April 20, 2019, constituted sufficient notice, and the petitioner's failure to file within the three-month period or the extended one-month period rendered the appeal time-barred. They further submitted that challenging the order via writ petition would frustrate the purpose of the limitation period.