Manth Green Private Limited vs. The State Of Bihar

Facts

Manth Green Private Limited (the petitioner) filed a writ petition before the Patna High Court challenging an ex parte order dated January 29, 2021, passed by the Assistant Commissioner of State Taxes, Patna North Circle. The petitioner is an assessee under the Bihar Goods and Services Taxes Act, 2017 (BGST Act). The primary issue was that the statutory appeal period under Section 107 of the BGST Act had long expired. Section 107 provides three months for filing an appeal, with an additional one month for delayed appeals if sufficient cause is shown. The petitioner had not availed this remedy. The Court noted a recent notification by the Central Board of Indirect Taxes and Customs (CBIC) extending the time for filing appeals against orders passed under Sections 73 and 74 of the BGST Act.

Held

The Court held that while the statutory appeal period under Section 107 of the BGST Act had expired, the petitioner could avail the remedy provided by Notification No. 53 of 2023- Central Tax. This notification extends the time for filing appeals against orders passed under Sections 73 and 74 of the BGST Act up to January 31, 2024. The Court emphasized that the maintainability of such an appeal is subject to specific conditions outlined in paragraph 3 of the notification. These conditions require the petitioner to pay the admitted portion of tax, interest, fine, fee, and penalty, and 12.5% of the remaining disputed tax (subject to a cap of twenty-five crore rupees), with at least 20% of this 12.5% paid from the Electronic Cash Ledger. The Court directed the petitioner to file an appeal satisfying these conditions by January 31, 2024. If the conditions are met, the appeal will be considered on merits; otherwise, it will be rejected. The Court also clarified that this benefit extends to cases where writ petitions were previously rejected solely on grounds of delay.

Key Issues

1. Whether the petitioner can file an appeal against the ex parte order dated January 29, 2021, given that the statutory period for filing an appeal under Section 107 of the BGST Act has expired? 2. Whether Notification No. 53 of 2023- Central Tax, dated November 2, 2023, issued by the CBIC, provides a remedy for the petitioner to file a delayed appeal? Petitioner's Contention: The petitioner, by implication, sought to avail the extended time for filing an appeal as provided by the recent CBIC notification, which was issued after the ex parte order and the expiry of the statutory appeal period. They relied on the special procedure prescribed by the notification. Revenue's Contention: The judgment does not explicitly record any specific arguments made by the revenue or State. However, the Court's reasoning implies that the revenue would be bound by the terms of the CBIC notification if the petitioner complied with its conditions.