Facts of the Case

This batch of about 245 writ petitions, led by M/s Pravat Kumar Choudhury and Ors., was filed before the Orissa High Court by registered dealers challenging first appellate orders passed by the Joint Commissioner of State Tax (Appeal), CT & GST, whereby their appeals against orders under Section 73/74 were rejected as barred by limitation under Section 107(1) read with Section 107(4) of the OGST/CGST Act, 2017. The petitioners contended that, in the absence of a functional GST Appellate Tribunal, they had no effective alternate remedy under Section 112. During pendency of the petitions, the CBIC issued Notification No.53/2023-Central Tax dated 02.11.2023, prescribing a special one-time procedure for filing or reviving appeals against Section 73/74 orders rejected solely on limitation, subject to pre-deposit conditions and a filing deadline of 31.01.2024.

Issues Involved

  1. Whether appeals rejected solely on the ground of limitation under Section 107 could be revived in light of Notification No.53/2023-Central Tax.
  2. Whether petitioners, absent a functional GST Appellate Tribunal, were entitled to relief from the High Court under Articles 226/227.

Petitioner's Arguments

  • Appeals were rejected merely on the technical ground of delay beyond the condonable period under Section 107(4).
  • With the GST Appellate Tribunal not constituted, petitioners had no effective alternate remedy under Section 112.
  • The subsequently issued CBIC amnesty notification entitled them to a fresh opportunity to pursue their appeals on merits.

Respondent's Arguments

  • Standing counsel for the State CT & GST Department, CGST, and the Deputy Solicitor General for the Union of India did not seriously contest the applicability of Notification No.53/2023-Central Tax to the batch of cases.
  • The respondents assisted the Court in working out the modality for disposal in line with the notification.

Court Order / Findings

  • The Court noted that Notification No.53/2023-Central Tax permits taxable persons whose Section 107 appeals were rejected solely on limitation grounds to file or revive appeals by 31.01.2024, subject to specified pre-deposit conditions.
  • In view of the notification, the impugned appellate orders were set aside and the matters remanded to the Appellate Authority to proceed in accordance with law.
  • Amounts already deposited by petitioners, whether under interim orders or suo motu, were directed to be taken into account when the appeals are decided on merits; any refund remains subject to the outcome of the appeals.
  • All writ petitions in the batch were disposed of with these observations and directions.

Important Clarification

  • Where a Section 107 appeal has been rejected purely on limitation and the taxpayer falls within the class covered by Notification No.53/2023-Central Tax, courts will ordinarily remand the matter to the Appellate Authority for fresh consideration on merits rather than adjudicate the underlying tax dispute in writ jurisdiction.
  • Taxpayers availing this route must comply with the pre-deposit conditions prescribed in the notification and file the fresh or restored appeal within the extended timeline of 31.01.2024.

Sections Involved

  • Section 107, CGST Act 2017 / OGST Act 2017 — limitation for filing the first appeal against orders under Sections 73/74.
  • Section 112, CGST Act 2017 — appeal to the GST Appellate Tribunal.
  • Section 148, CGST Act 2017 — power to notify special procedures, the basis for Notification No.53/2023-Central Tax.
  • Notification No.53/2023-Central Tax, dated 02.11.2023 — special amnesty procedure for appeals rejected solely on limitation.

Decision – In Favour of

Disposed of with directions, in favour of the Assessees to the extent that the time-barred rejections were set aside and a fresh opportunity for appeal on merits was restored under the amnesty notification; the Court did not adjudicate the merits of the underlying tax demands.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court of Orissa, Cuttack
  • Case No.: W.P.(C) No.6684 of 2023 and Batch
  • CNR: Not available
  • Coram: Acting Chief Justice Dr. B.R. Sarangi and Justice Murahari Sri Raman
  • Decision Date: 08-11-2023
  • Disposal Nature: Disposed of (remanded to Appellate Authority per CBIC amnesty notification)

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