M/S Ankit Motors vs. State Of U.P. And 2 Others
Original PDF →Facts
The petitioner, M/s Ankit Motors, filed a writ petition challenging an order dated 25.08.2022 passed by the appellate authority. This order dismissed the petitioner's appeal against an earlier order dated 18.12.2021, on the grounds that it was barred by limitation under Section 107 of the GST Act. The petitioner had filed their appeal on 30.06.2022, which was significantly later than the prescribed period. The core of the petitioner's argument revolves around the extension of limitation granted by the Supreme Court in Misc. Application No. 21 of 2022 in Suo Motu Writ Petition No. 03 of 2020.
Held
The Court held that the petitioner is entitled to the benefit of the extension of limitation as per the Supreme Court's order. The Supreme Court's directions stipulated a 90-day period from 01.03.2022, with the option of a longer period if the remaining balance of limitation was greater. The Court found that the appellate authority had failed to consider the second part of the Supreme Court's directions, which allowed for a longer period if applicable. Furthermore, the Court acknowledged the appellate authority's power under Section 107(4) of the GST Act to condone delay for an additional 30 days for sufficient cause. Consequently, the order dated 25.08.2022 was set aside, and the matter was remanded to the appellate authority for a decision on the appeal on merits, with the delay condoned in view of the Supreme Court's directions.
Key Issues
1. Whether the petitioner is entitled to the benefit of the extension of limitation as per the Supreme Court's order in Misc. Application No. 21 of 2022 in Suo Motu Writ Petition No. 03 of 2020, and if so, what is the applicable period of limitation for filing the appeal under Section 107 of the GST Act? Petitioner's Contention: The petitioner argued that the Supreme Court's order provided a limitation period of 90 days from 01.03.2022, or a longer period if the actual balance of limitation remaining after 01.03.2022 was greater than 90 days. They contended that the appellate authority failed to consider the second part of the Supreme Court's direction regarding the longer period. The petitioner also pointed out that the Appellate Authority has the power under Section 107(4) of the GST Act to condone delay for a further 30 days for sufficient cause. Respondent's Contention: The judgment does not record any specific arguments made by the respondent.
Sections Cited
Section 107, Section 107(4)
AI-generated summary — verify with the full judgment below
Court No. - 6 Case :- WRIT TAX No. - 1345 of 2022 Petitioner :- M/S Ankit Motors Respondent :- State Of U.P. And 2 Others Counsel for Petitioner :- Rishi Raj Kapoor Counsel for Respondent :- C.S.C. Hon'ble Pankaj Bhatia,J. Heard counsel for the petitioner. Present petition has been filed challenging the order dated 25.08.2022, whereby the appeal preferred by the petitioner challenging the order dated 18.12.2021 was dismissed being barred by limitation as prescribed under Section 107 of the GST Act. Facts in brief are that an order was passed against the petitioner on 18.12.2021 and the petitioner filed an appeal against the said order on 30.06.2022. The submission of the counsel for the petitioner is that the petitioner is entitled to benefit of extension of limitation in terms of the order of the Hon'ble Supreme Court passed in Misc. Application No. 21 of 2022 in Suo Motu Writ Petition No. 03 of 2020, wherein the Hon'ble Supreme Court granted benefit as under:- "In cases where the limitation would have expired during the period between 15.03.2020 till 28.02.2022. Notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 01.03.2022. In the event the actual balance period of limitation remaining, with effect from 01.03.2022 is greater than 90 days, that longer period shall apply". In the light of the directions given by the Hon'ble Supreme Court, a period of 90 days' is available from 01.03.2022 and in the event the actual balance of period of limitation is greater than 90 days. The longer period shall apply, thus, in terms of the order of the Hon'ble Supreme Court, the petitioner had 90 days with effect from 01.03.2022. The period of limitation can be extended by the Tribunal in terms of the power of the Appellate Authority under Section 107(4) of the GST Act for sufficient cause by another 30 days over the 90 days.
The second part of the direction of the Hon'ble Supreme Court has not been considered in the Appellate Authority's order, as such, order dated 25.08.2022 is set aside. The matter is remanded for the decision on the appeal on merits. Delay is condoned in view of the direction of the Hon'ble Supreme Court. Order Date :- 29.3.2023 S.A. SALMAN AHMAD High Court of Judicature at Allahabad
Reproduced from the public record of the Allahabad High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.