M/S Vikash Enterprises vs. The State Of Bihar

Facts

The petitioner, M/s Vikash Enterprises, challenged an order of the Additional Commissioner, State GST (Appeals), Patna, which dismissed their appeal on the grounds of delay. The appeal was filed under the Bihar Goods and Services Taxes Act, 2017 (BGST Act). The delay in filing the appeal exceeded the one-month grace period provided under Section 107(4) of the BGST Act. 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 on or before 31.03.2023 under Sections 73 and 74 of the BGST Act, subject to certain conditions.

Held

The Court held that while generally, a High Court cannot condone delays beyond statutory limits, the issuance of Notification No. 53 of 2023-Central Tax creates a special procedure. This Notification allows for the restoration of appeals dismissed on grounds of delay, provided the conditions stipulated in paragraph 3 of the Notification are satisfied. These conditions include paying the admitted tax, interest, fine, fee, and penalty, along with 12.5% of the remaining disputed tax, 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 petitioner to comply with these conditions by 31.01.2024. If satisfied, the appeal would be considered on merits; otherwise, it would stand rejected. The Court also clarified that this benefit extends to other cases where writ petitions were rejected solely on the ground of delay, allowing assessees to invoke the remedy under the Notification.

Key Issues

1. Whether the High Court, under Article 226 of the Constitution, can condone a delay in filing an appeal beyond the period prescribed in Section 107(4) of the BGST Act, when the statute provides a specific period for delayed appeals? 2. Whether Notification No. 53 of 2023-Central Tax, which extends the time for filing appeals, can be applied to restore an appeal that was already dismissed by the Appellate Authority for delay, and if so, what are the conditions for such restoration? The petitioner argued that the newly issued Notification provides a remedy for delayed appeals, even those previously dismissed. They contended that the Notification allows for appeals to be filed or considered as properly filed until 31.01.2024, provided the conditions outlined therein are met. The revenue, represented by the State, did not present any arguments against the application of the Notification.