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 25.10.2024 passed by the Joint Commissioner (Appeal), State Tax, Bilaspur, which dismissed their appeal on grounds of delay. The petitioner also challenged an earlier order dated 6.12.2023 passed by the State Tax Officer. The petitioner argued that the issue was decided by a Co-ordinate Bench in WPT No.40/2023, which directed that appeals could be filed once the Goods and Service Tax Appellate Tribunal was constituted. The petitioner also referred to a Central Board of Indirect Taxes and Customs order dated 03.12.2019 (Order No.09/2019-Central Tax) which clarified the extension of limitation for filing appeals due to the non-constitution of the Appellate Tribunal.

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, the petitioner may invoke the provision for filing an appeal after making the statutory deposit. The Court reasoned that this approach aligns with the previous order of a Co-ordinate Bench and the clarification provided by the CBIC regarding the extension of limitation due to the non-constitution of the Appellate Tribunal. The Court directed that upon filing of such an appeal, the concerned Authority shall decide it strictly in accordance with law. The statutory stay under Section 112(9) of the Act 2017 would remain in operation until the appeal is decided. The Court also directed the defreezing of the petitioner's bank account, subject to the final outcome of the appeal. It was made clear that if the appeal is not filed within the prescribed period or if the statutory deposit is not made within 30 days, the State would be at liberty to proceed for recovery, and the order would lose its efficacy.

Key Issues

1. Whether the appeal filed by the petitioner before the Joint Commissioner (Appeal) was rightly dismissed on the ground of delay, considering the non-constitution of the Goods and Service Tax Appellate Tribunal and the subsequent clarifications issued by the Central Board of Indirect Taxes and Customs? Petitioner's Arguments: The petitioner contended that the matter had been decided by a Co-ordinate Bench of the High Court in WPT No.40/2023, which allowed for the filing of appeals upon the constitution of the Appellate Tribunal. They relied on Order No.09/2019-Central Tax issued by the CBIC, which clarified that the period for filing appeals under Section 112 of the Act 2017 would commence from the date the President or State President of the Appellate Tribunal enters office. They argued that this order effectively extended the limitation period, and therefore, their appeal should not have been dismissed solely on delay. Respondent's Arguments: The respondent's counsel did not oppose the prayer made by the petitioner.