M/S Kamakhya Power Solutions vs. The Union Of INDIA And 4 Ors

Held

The Court held that the petitioner's application for a special rate was not barred by limitation. The reasoning was based on a coordinate bench's decision in W.P(C) No. 740/2022 (M/s North East Hi-Tech Vs. Union of India & Ors), which relied on the Supreme Court's suo motu order in Writ Petition No. 3/2020. This order extended the period of limitation from 15.03.2020 to 28.02.2022. The petitioner's application, filed on 05.03.2021, clearly fell within this extended period. The Court found this position of law undisputed by the counsels. The ratio decidendi is that the Supreme Court's extension of limitation periods due to the pandemic applies to applications for special rates under excise notifications, preventing their rejection on technical grounds of limitation. The impugned order dated 30.08.2021 was set aside, and the matter was remanded back to the Principal Commissioner, GST, Guwahati, for a fresh decision on merits, with an opportunity of hearing to the petitioner.

Facts

The petitioner, M/s Kamakhya Power Solutions, a partnership firm, challenged an order dated 30.08.2021 passed by the Principal Commissioner, GST, Guwahati. This order rejected the petitioner's application for a special rate under Notification No. 20/2008-CE dated 27.03.2008, deeming it barred by limitation. The petitioner was engaged in manufacturing Lead Ingots and Remelted Lead Ingots. The challenge stems from the denial of their application for a special rate, which they believed they were eligible for based on their value addition, as provided in Clause 3(1) of the aforementioned notification. The rejection was solely on the grounds of the application being filed beyond the prescribed time limit.

Key Issues

1. Whether the petitioner's application for a special rate under Clause 3(1) of Notification No. 20/2008-CE dated 27.03.2008 was barred by limitation, as held by the Principal Commissioner, GST, Guwahati? Petitioner's contention: The petitioner argued that in similar matters, coordinate benches have remanded cases back to the authorities for a decision on merits. They relied on the order in W.P(C) No. 740/2022 (M/s North East Hi-Tech Vs. Union of India & Ors). The petitioner also pointed to the Supreme Court's suo motu order extending limitation periods from 15.03.2020 till 28.02.2022, and contended that their application filed on 05.03.2021 fell within this extended period. Revenue's contention: The revenue, through the Principal Commissioner, GST, Guwahati, held that the application was barred by limitation as it was not filed within the time specified in the notification. No specific arguments or reliance on provisions by the revenue were recorded in the judgment.