Sarika Constructions PVT. LTD. vs. The State Of Bihar

Facts

The petitioner, Sarika Constructions Pvt. Ltd., filed a writ petition challenging an order passed by the Additional Commissioner of State Tax (Appeal), Saran 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 prescribes a time limit of three months for filing an appeal, with an additional one-month grace period for filing with a satisfactory explanation for the delay. The petitioner's appeal was rejected as it was filed beyond even this extended one-month period. The Court noted a subsequent Notification No. 53 of 2023-Central Tax, dated 02.11.2023, issued by the Central Board of Indirect Taxes and Customs, which extended the time for filing appeals against orders passed on or before 31.03.2023 under Sections 73 and 74 of the BGST Act.

Held

The Court held that while the Appellate Authority and the High Court cannot condone delays beyond the statutory period prescribed in Section 107 of the BGST Act, Notification No. 53 of 2023-Central Tax provides a special procedure for filing appeals against orders passed on or before 31.03.2023 under Sections 73 and 74 of the BGST Act. This notification allows appeals to be filed until 31st January 2024, provided certain conditions are met. These conditions include paying the admitted portion of tax, interest, fine, fee, and penalty, and 12.5% of the remaining disputed tax (up to a maximum of twenty-five crore rupees), with at least 20% of this 12.5% paid from the Electronic Cash Ledger. The Court found it appropriate to restore the petitioner's appeal to the file of the Appellate Authority, subject to the petitioner satisfying the conditions stipulated in paragraph 3 of the Notification by 31.01.2024. If these conditions are met, the appeal will be considered on merits; otherwise, it will stand rejected. The Court also clarified that this benefit extends to other cases where writ petitions were rejected solely on grounds of delay, allowing assessees to invoke the remedy under the notification.

Key Issues

1. Whether the Appellate Authority or this Court, under Article 226 of the Constitution of India, can condone a delay in filing an appeal beyond the period specifically provided in Section 107 of the BGST Act? 2. Whether 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, can be applied to restore the petitioner's appeal that was dismissed for delay? Petitioner's arguments: The petitioner implicitly argued that the subsequent notification should provide relief, allowing their appeal to be considered on merits despite the initial delay. They relied on the extension provided by the notification. Revenue's arguments: The revenue, represented by the Advocate General, did not explicitly record arguments against the application of the notification. However, the initial dismissal of the appeal by the Appellate Authority was based on the strict interpretation of Section 107 of the BGST Act.