Nandan Steels And Power Limited vs. State Of Chhattisgarh

Held

The Court held that the Appellate Authority's power to condone delay is strictly limited by the statute. Section 107(4) of the Chhattisgarh GST Act allows for condonation of delay only for a period of one month after the expiry of the initial three-month limitation period. The appeal in question was filed on 16.12.2019, which was significantly beyond this extended period. The Court, relying on the Supreme Court's decisions in M/s N.V. International vs. State of Assam and others and Assistant Commissioner (CT) LTU, Kakinada & Ors. vs. Glaxo Smith Kline Consumer Health Care Limited, affirmed that once the statutory period for condoning delay expires, the Appellate Authority becomes functus officio and lacks the power to entertain the appeal or condone further delay. The Court found no strong case for interference with the Appellate Authority's order, as the delay was beyond the statutorily permissible limits. The petitioner's argument regarding the lack of a hearing was implicitly rejected by the Court's adherence to the strict interpretation of the limitation period.

Facts

The petitioner, Nandan Steels And Power Limited, filed a writ petition challenging an order dated 20.12.2019 passed by the Joint Commissioner (Appeals), Chhattisgarh GST Department. This order rejected the petitioner's appeal against an order dated 26.06.2019 by the Adjudicating Authority, which had disallowed certain GST input credit. The appeal was rejected solely on the grounds of being barred by limitation. The Adjudicating Authority's order was passed on 26.06.2019. The appeal was filed on 16.12.2019, significantly beyond the statutory period of three months and the further one-month period for condonation of delay allowed under Section 107 of the Chhattisgarh GST Act.

Key Issues

1. Whether the Appellate Authority had the power to condone the delay in filing the appeal beyond the extended period of one month prescribed under Section 107(4) of the Chhattisgarh GST Act, when the appeal was filed on 16.12.2019, beyond the initial three months from 26.06.2019 and the subsequent one month for condonation. Petitioner's contentions: The petitioner argued that the delay in filing the appeal was due to the ill-health of their Chartered Accountant, a cause beyond their control. They sought sympathetic consideration and for the matter to be remitted back for consideration on merits. Additionally, the petitioner contended that the Appellate Authority rejected the appeal without granting an opportunity of hearing to explain the delay, thus violating principles of natural justice. Revenue's contentions: The State counsel argued that Section 107 of the Chhattisgarh GST Act prescribes a strict limitation period of three months, with a further power to condone delay for only one month. Beyond this extended period, the Appellate Authority has no power to entertain an appeal or condone further delay, rendering it functus officio. They relied on Supreme Court judgments to support this interpretation.