M/S Parasar General Store A Firm vs. State Of Chhattisgarh

Facts

The petitioner, M/s Parasar General Store, through its proprietor Gopal Prasad Sharma, challenged an order dated 22.11.2024 passed by the Joint Commissioner (Appeals) of State Tax, Chhattisgarh. This order dismissed the petitioner's appeal filed under Section 107 of the Chhattisgarh Goods and Services Tax Act, 2017. The petitioner contended that the issue had been decided by this Court in previous writ petitions, referencing orders that allowed for appeals to be filed once the Goods and Service Tax Appellate Tribunal (GSTAT) was constituted. The petitioner also relied on a Central Board of Indirect Taxes and Customs (CBIC) order dated 03.12.2019, which clarified the calculation of the limitation period for filing appeals when the Appellate Tribunal was not yet constituted. The respondent, State of Chhattisgarh, did not oppose the petitioner's prayer.

Held

The Court held that it was appropriate to direct that as soon as the President or State President enters the office of the Goods and Service Tax Appellate Tribunal constituted under the Act of 2017, the petitioner may invoke the provision for filing an appeal after making the statutory deposit. The Court reasoned that this direction was in line with previous orders of this Court and the clarification issued by the CBIC regarding the extension of limitation periods due to the non-constitution of the Appellate Tribunal. The Court further directed that upon filing of such an appeal, the concerned Authority shall decide it strictly in accordance with law. The statutory stay provided under Section 112(9) of the Act, 2017, would remain in operation until the decision of the appeal. The Court also clarified that if the appeal is not filed within the prescribed period of limitation after the GSTAT is constituted, the State would be at liberty to proceed against the petitioner for recovery. Additionally, the Court stipulated that if the amount required for filing the appeal is not deposited within 30 days from the date of the order, the order would lose its efficacy.

Key Issues

1. Whether the petitioner should be granted liberty to file an appeal before the Goods and Service Tax Appellate Tribunal (GSTAT) once it is constituted, considering the prevailing circumstances regarding the non-constitution of the Tribunal and the CBIC's clarification on limitation periods? Petitioner's arguments: The petitioner argued that the matter had already been decided by this Court in similar writ petitions. They relied on a CBIC Order No. 09/2019-Central Tax dated 03.12.2019, which extended the limitation period for filing appeals by considering the date of constitution of the Appellate Tribunal and the President/State President entering office. They submitted that this order effectively extended the limitation period, and therefore, they should be allowed to file an appeal after statutory deposit upon the constitution of the GSTAT. Revenue's arguments: The learned counsel for the respondent did not oppose the prayer made by the petitioner.