M/S Rajesh Bhandar, (2019-2020) vs. The State Of Bihar

Facts

The petitioner, M/s Rajesh Bhandar, challenged an order passed by the Additional Commissioner of State Tax (Appeal), Bhagalpur Division, which dismissed their appeal on the grounds of delay. The appeal was filed under the Bihar Goods and Services Taxes Act, 2017 (BGST Act). Section 107 of the BGST Act allows three months for filing an appeal, with an additional one month for delayed appeals if a satisfactory explanation is provided. The petitioner's appeal was rejected as it was filed beyond this extended period. Subsequently, the Central Board of Indirect Taxes and Customs issued Notification No. 53 of 2023, extending the time for filing appeals against orders passed on or before March 31, 2023, under Sections 73 and 74 of the BGST Act.

Held

The Court held that the petitioner's appeal, dismissed for delay, could be restored to the file of the Appellate Authority, subject to the conditions stipulated in paragraph 3 of Notification No. 53 of 2023. This notification provides a special procedure for filing appeals against orders passed on or before March 31, 2023, under Sections 73 and 74 of the BGST Act, extending the time for filing up to January 31, 2024. The conditions require the admitted portion of tax, interest, fine, fee, and penalty to be paid in full, along with 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 set aside the impugned order of dismissal and directed the assessee to satisfy these conditions before January 31, 2024. If satisfied, the appeal would be considered on merits; otherwise, it would stand rejected. The Court also clarified that this remedy is available even in cases where writ petitions against dismissal of delayed appeals were previously rejected by the High Court.

Key Issues

1. Whether the petitioner's appeal, dismissed for being beyond the statutory period prescribed under Section 107 of the BGST Act, can be restored in light of Notification No. 53 of 2023-Central Tax? Petitioner's contention: The petitioner argued that the subsequent notification issued by the Central Board of Indirect Taxes and Customs provides a special procedure and extends the time for filing appeals, thereby allowing for the restoration of their dismissed appeal. They relied on the provisions of Notification No. 53 of 2023. Revenue's contention: The revenue's arguments are not explicitly recorded in the judgment, but their presence as respondents indicates their opposition to the petitioner's claim for restoration of the appeal.