Kld Creation Infrastructure PVT. LTD vs. The State Of Madhya Pradesh
Held
The Court held that the petitioner has a remedy of filing an appeal before the GST Tribunal. The Court referred to Circular No. 132/2/2020-GST dated March 18, 2020, which clarifies the time limit for filing appeals to the Appellate Tribunal. According to the circular, an appeal can be filed within three months (six months in case of appeals by the Government) from the date of communication of the order or the date on which the President or State President of the Appellate Tribunal enters office, whichever is later. The Court noted that the petitioner had already provided reasons for condonation of delay before the Appellate Authority, and these reasons are liable to be raised again before the GST Appellate Tribunal. The Court dismissed the writ petition without commenting on the merits of the matter, granting liberty to the petitioner to approach the GST Tribunal. The Court also indicated that thereafter, the petitioner may approach the High Court or Supreme Court as provided in the statute. No specific issue regarding the Tribunal's power to condone delay was directly decided, but the existence of a remedy before the Tribunal was affirmed.
Facts
The petitioner, KLD Creation Infrastructure Pvt. Ltd., filed a writ petition before the Madhya Pradesh High Court apprehending that their appeal before the GST Appellate Tribunal would not be entertained due to limitations on condoning delays. The petitioner was concerned about the statutory limitation period for filing appeals under Section 107 of the MPGST Act, 2017, given the recent constitution and commencement of functioning of the GST Appellate Tribunal. The Department had issued a circular dated March 18, 2020, providing a three-month or six-month limitation period for filing appeals from the date the Presiding Officer took charge. This writ petition was filed subsequent to a previous writ petition (WP No. 9964/2026) on identical facts, which was dismissed by the same High Court.
Key Issues
1. Whether the GST Appellate Tribunal has the power to condone delays in filing appeals beyond the statutory limitation period prescribed under Section 107 of the MPGST Act, 2017, especially in light of the non-constitution of the Tribunal for a period. Petitioner's argument: The petitioner's apprehension stems from the belief that the GST Appellate Tribunal may not have the power to condone delays, potentially barring their appeal if filed after the stipulated period, particularly considering the prior difficulties in filing due to the Tribunal's non-constitution. Revenue's argument: The Revenue relied on Circular No. 132/2/2020-GST dated March 18, 2020, issued by the Board. This circular clarified that appeals to the Tribunal could be made within three months (six months for the Government) from the date of communication of the order or the date on which the President or State President of the Appellate Tribunal enters office, whichever is later. The Revenue contended that this circular provides a mechanism for filing appeals and implicitly addresses the period of non-constitution. The Revenue also pointed to a previous High Court order dismissing a similar writ petition on identical facts.
Sections Cited
Section 107
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ORDER Per: Justice Vivek Rusia The petitioner has filed the present petition on the apprehension that since the GST Appellate Tribunal has no power to condone the delay beyond the statutory limitation provided under Section 107 of the MPGST Act, 2017, the appeal will not be entertained.
The GST Appellate Tribunal has been constituted, and the Presiding Officers have been appointed by the Government of India. In the State of M.P., the GST Appellate Tribunal has also started its functioning. The Department has already issued a circular dated 18.03.2020 to give a three-month/six-months (as the case may be) limitation to the assessee to file an appeal before the GST Appellate Tribunal from the date, the Presiding Officer takes charge in their respective Tribunals.
Thi
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