Indian Trade And Transport Corporation vs. State Tax Officer

Facts

The Petitioner, Indian Trade and Transport Corporation, filed a writ petition challenging an order dated 11.11.2024 by the Joint Commissioner (Appeal), Chhattisgarh State Tax, GST, Bilaspur, which dismissed their appeal on grounds of delay. The Petitioner also challenged an earlier order dated 18.04.2024 by the State Tax Officer, Janjgir-Champa Circle. The Petitioner argued that the matter was decided by a co-ordinate bench in W.P(T) No.40/2023, which directed that appeals could be filed once the Goods and Service Tax Appellate Tribunal (GSTAT) was constituted. The Petitioner further relied on a Central Board of Indirect Taxes and Customs (CBIC) order dated 03.12.2019, which clarified the calculation of the three-month period for filing appeals, considering the constitution of the GSTAT. The Petitioner sought liberty to file an appeal after the GSTAT President or State President entered office, along with statutory deposit.

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 (GSTAT) constituted under the Act of 2017, the Petitioner may invoke the provision for filing an appeal after paying the statutory deposit. The Court further directed that upon such an appeal being filed, the concerned authority shall decide it strictly in accordance with law. The statutory stay provided under Section 112(9) of the Act of 2017 would remain in operation until the decision of the said appeal. Additionally, the Court directed that the Petitioner's bank account, which had been frozen, shall be defreezed, subject to the final outcome of the appeal if filed. The Court made it clear that if the appeal is not filed within the prescribed period of limitation or if the statutory deposit is not made within 30 days, the State would be at liberty to proceed against the Petitioner, and the order would lose its efficacy.

Key Issues

1. Whether the Petitioner should be granted liberty to file an appeal before the GSTAT, considering the delay and the prevailing circumstances regarding the constitution of the Tribunal? 2. Whether the Petitioner's bank account, which was frozen, should be defreezed pending the outcome of a potential appeal? The Petitioner argued that a co-ordinate bench of this Court, in W.P(T) No.40/2023, had allowed for appeals to be filed upon the constitution of the GSTAT. They further relied on CBIC Order No.09/2019-Central Tax dated 03.12.2019, which provided for the extension of limitation for filing appeals by clarifying the commencement of the three-month period from the date the President or State President of the GSTAT enters office. The Petitioner contended that this order effectively extended the limitation period and sought permission to file an appeal under this provision. The Revenue did not oppose the Petitioner's prayer.