Tvl. Murugan Enterprises vs. The Appellate Deputy Commissioner (St)

Facts

The petitioner, Tvl. Murugan Enterprises, filed three writ petitions before the Madurai Bench of the Madras High Court challenging orders dated April 6, 2023, passed by the State Tax Officer, Ettayapuram. The petitioner contended that they could not file an appeal before the Appellate Deputy Commissioner (ST) within the prescribed time limit of 90 days plus a grace period of 30 days (total 120 days). The reason cited for the delay was the petitioner's hospitalization due to kidney failure. The petitioner submitted a doctor's certificate to support their claim. The respondents argued that the prescribed time limit for filing an appeal was 120 days, and they were not empowered to condone delays beyond this period.

Held

The Court allowed the writ petitions, directing the petitioner to file an appeal within four weeks from the date of receiving the order. The Court observed that the petitioner had presented a doctor's certificate substantiating their medical condition, which prevented them from filing the appeal within the prescribed time. The Court opined that the petitioner ought to be granted an opportunity to file an appeal. Consequently, the respondents were directed to number the appeal without insisting on the limitation period and to hear the case on its merits. The appellate authority was instructed to complete the exercise within four months from the date of the appeal's preference. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the Court should permit the petitioner to file an appeal beyond the statutory limitation period of 120 days, considering the medical grounds presented by the petitioner? The petitioner argued that due to a severe medical condition (kidney failure requiring hospitalization and treatment), they were unable to file the appeal within the stipulated 120 days. They relied on the doctor's certificate as evidence of their incapacitation and sought an opportunity to present their case on merits before the appellate authority. The petitioner prayed for the impugned orders to be quashed and for a re-do of the assessment with a personal hearing. The respondents contended that the Goods and Services Tax (GST) law prescribes a strict time limit of 120 days for filing appeals. They argued that they lacked the power to condone delays beyond this period and therefore, the writ petitions should be dismissed.