M/S D And Sons Motors PVT. LTD. vs. State Of Chhattisgarh

Facts

The petitioner, M/s D And Sons Motors Pvt. Ltd., filed a writ petition challenging an order dated 16.12.2024 passed by the Joint Commissioner (Appeal), State Tax Bilaspur. The appeal was dismissed solely on the ground of delay. The petitioner argued that the issue had been decided by a co-ordinate bench of the High Court in WPT No.40/2023, which directed that appeals could be filed once the Goods and Service Tax Appellate Tribunal (GSTAT) was constituted. The petitioner also referred to a Central Board of Indirect Taxes and Customs (CBIC) order dated 03.12.2019 (Order No.09/2019-Central Tax) which clarified that the limitation period for filing appeals would commence from the date the President or State President of the GSTAT enters office, effectively extending the time for filing appeals due to the non-constitution of the Tribunal.

Held

The Court held that the petitioner's prayer was appropriate, considering the order dated 03.12.2019 issued by the CBIC and the order dated 09.05.2024 passed by a co-ordinate bench in WPT No.40/2023. The Court directed that as soon as the President or State President enters the office of the Goods and Service Tax Appellate Tribunal constituted under the Act, the petitioner may invoke the provision for filing an appeal after making the statutory deposit. The concerned Authority shall decide the appeal strictly in accordance with law. The statutory stay under Section 112(9) of the Act 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 Tribunal's constitution, the State can proceed with recovery. Furthermore, if the statutory deposit is not made within 30 days from the date of the order, the present order would lose its efficacy. The petition was disposed of with these directions.

Key Issues

1. Whether the dismissal of the petitioner's appeal by the Joint Commissioner (Appeal) on grounds of delay is sustainable, considering the non-constitution of the Goods and Service Tax Appellate Tribunal (GSTAT) and the relevant CBIC order extending limitation periods? (Question of law) Petitioner's arguments: The petitioner contended that the issue of delay in filing appeals due to the non-constitution of the GSTAT had already been addressed by a co-ordinate bench of the High Court in WPT No.40/2023. They relied on the CBIC Order No.09/2019-Central Tax dated 03.12.2019, which clarified that the three-month period for filing an appeal under Section 112(1) of the Act would commence from the date the President or State President of the GSTAT enters office. Therefore, the limitation period was effectively extended, and the dismissal on delay was incorrect. Respondent's arguments: The respondent's counsel did not oppose the petitioner's prayer.