Utkarsh Traders, Langerpura vs. The State Of Bihar

Facts

The petitioner, Utkarsh Traders, filed a delayed appeal before the Additional Commissioner (Appeal), Bihar State Tax, Saran Division, Chhapra. The appeal was rejected by the Appellate Authority (Annexure-6) due to being filed beyond the prescribed limitation period. While the appeal was filed within the extended one-month period for delayed appeals under Section 107 of the BGST Act, no grounds for condonation of delay were provided, leading to its dismissal. Subsequently, the Central Board of Indirect Taxes and Customs issued Notification No. 53 of 2023-Central Tax, dated 02.11.2023, extending the time for filing appeals against orders passed under Sections 73 and 74 of the BGST Act on or before 31.03.2023.

Held

The Court held that the appeal, which was dismissed by the first Appellate Authority for being delayed, should be restored to the files of the Authority, subject to the petitioner satisfying the conditions stipulated in paragraph 3 of Notification No. 53 of 2023-Central Tax. These conditions include paying the admitted amount of tax, interest, fine, fee, and penalty, and a sum equal to 12.5% of the remaining disputed tax amount (subject to a maximum of twenty-five crore rupees), with at least 20% of this 12.5% paid from the Electronic Cash Ledger. The Court reasoned that the notification provides a special procedure for filing delayed appeals against orders under Sections 73 and 74 of the BGST Act, and the petitioner is entitled to avail this provision. The impugned order of rejection (Annexure-6) was set aside on the condition that the petitioner satisfies these requirements before 31.01.2024. If the conditions are met, the appeal will be considered on merits; otherwise, the impugned order will stand restored. The Court specifically noted that the petitioner would need to pay the "deficient amount" as required by the notification.

Key Issues

1. Whether the appeal, rejected for being delayed and lacking grounds for condonation, can be restored in light of Notification No. 53 of 2023-Central Tax, dated 02.11.2023, which extends the time for filing appeals against orders passed under Sections 73 and 74 of the BGST Act? Petitioner's Contention: The petitioner argued that the aforementioned notification provides a special procedure for filing delayed appeals, extending the period beyond the one month stipulated in Section 107(4) of the BGST Act. They contended that the appeal, though initially rejected, should be considered maintainable under this new notification, provided the conditions therein are met. Respondent's Contention: The judgment does not record any specific arguments from the respondent State.