Hari Shankar Patel (M/S Hari Shankar Patel) vs. The State Of Chhattisgarh

Facts

The petitioner, Hari Shankar Patel, filed a writ petition challenging an order dated April 15, 2025, passed by the Joint Commissioner (Appeal), Chhattisgarh. The appeal was summarily dismissed for being delayed. The petitioner's grievance stems from an ex-parte order dated August 7, 2024, passed by the Assistant Commissioner, State Tax, Raigarh Circle-One, which imposed a tax, interest, and penalty of Rs. 8,56,562/-. The petitioner applied for rectification of this order on August 9, 2024, which was dismissed on December 11, 2024. The appeal was subsequently filed on March 17, 2025. The petitioner argued that the Appellate Authority erred by not considering the period from the dismissal of the rectification application (December 11, 2024) when calculating the limitation period for the appeal.

Held

The Court noted the submissions of both parties, particularly the petitioner's reliance on Circular No. 224/18/2024-GST dated July 11, 2024, which provides guidelines for recovery of outstanding dues when the first appeal has been disposed of pending the operationalization of the Appellate Tribunal. The Court found no further adjudication was required in the writ petition. The petitioner was granted liberty to comply with the conditions of the aforementioned circular by filing an undertaking with the jurisdictional officer. This undertaking should declare the petitioner's intent to file an appeal before the Appellate Tribunal once it becomes operational, within the time limit specified in Section 112 of the CGST Act, and to pay the pre-deposit as per Section 112(8) within 30 days of receiving a copy of the Court's order. The Court directed that upon filing such an undertaking regarding the pre-statutory deposit, the recovery of the remaining amount shall remain stayed as per Section 112(9). It was made clear that this order would lose its efficacy if the amount was not deposited within the stipulated period. The Court did not decide the issue of limitation on its merits.

Key Issues

1. Whether the period of limitation for filing an appeal under Section 107(4) of the Chhattisgarh Goods & Services Tax Act, 2017, should commence from the date of rejection of a rectification application filed under Section 161 of the CGST Act, rather than the original order date. Petitioner's Contention: The petitioner argued that the appeal was filed within the prescribed limitation period if the time taken for the rectification application's disposal is considered. They relied on the Madurai Bench of the Madras High Court's decision in M/s. SPK and Co. vs. The State Tax Officer, which held that the limitation period for challenging an assessment order starts from the date of rejection of the rectification application. The petitioner also referred to Circular No. 224/18/2024-GST dated July 11, 2024, suggesting an extension of the limitation period until the Appellate Tribunal becomes operational, subject to certain conditions. Revenue's Contention: The learned counsel for the State did not oppose the petitioner's prayer.