Facts of the Case

An adjudication order was passed against the petitioner, M/S Ankit Motors, on 27.10.2021. The petitioner filed a first appeal against that order under Section 107 of the GST Act on 30.06.2022. The Appellate Authority, by order dated 25.08.2022, dismissed the appeal as barred by limitation. The petitioner approached the Allahabad High Court by way of a writ petition, since no GST Appellate Tribunal had been constituted in the State of Uttar Pradesh at the relevant time (the constitution notification being dated 14.09.2023), leaving the writ court as the only available forum to challenge the appellate dismissal.

Issues Involved

  1. Whether the petitioner was entitled to the benefit of the Supreme Court's suo motu limitation-extension order in computing the period for filing the appeal under Section 107.
  2. Whether the Appellate Authority had correctly applied that extension, including the further 30-day condonable period under Section 107(4).

Petitioner's Arguments

  • The petitioner was entitled to the benefit of the Supreme Court's order in Miscellaneous Application No.21 of 2022 in Suo Motu Writ Petition No.3 of 2020, which granted all persons a limitation period of 90 days from 01.03.2022 where the limitation would otherwise have expired between 15.03.2020 and 28.02.2022 (or the actual balance period, if longer).
  • Applying this, the petitioner had 90 days from 01.03.2022, further extendable by 30 days under the Appellate Authority's condonation power under Section 107(4) of the GST Act.
  • The Appellate Authority's order failed to consider this second limb of the Supreme Court's direction.

Respondent's Arguments

  • Represented by the learned ACSC for the State; the order records no substantive contest of the limitation computation on record.

Court Order / Findings

  • The Court held that the second part of the Supreme Court's direction — the further 30-day condonable period under Section 107(4) — had not been considered by the Appellate Authority while dismissing the appeal as time-barred.
  • The order dated 25.08.2022 was accordingly set aside, and delay in filing the appeal was condoned in view of the Supreme Court's directions.
  • The matter was remanded to the Appellate Authority for a decision on the appeal on merits.

Important Clarification

  • Appellate Authorities under Section 107 of the GST Act must apply the Supreme Court's suo motu COVID limitation-extension order (Misc. Application No.21 of 2022 in SMW(C) No.3 of 2020) in full, including both the 90-day extension from 01.03.2022 and the further 30-day condonable period under Section 107(4), before dismissing an appeal as time-barred.
  • Where no GST Appellate Tribunal is constituted in a State, writ jurisdiction remains available to challenge an Appellate Authority's order.

Sections Involved

  • Section 107, GST Act, 2017 — appeals to the Appellate Authority, including the limitation period and the Authority's power to condone delay under sub-section (4).

Decision – In Favour of

Assessee. The petition was allowed to the extent that the time-bar dismissal was set aside and delay condoned; the appeal itself was remanded for decision on merits, not decided in the petitioner's favour on the underlying tax demand.

Related Case Laws

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

Case Details

Court: High Court of Judicature at Allahabad
Case No.: Writ Tax No.1355 of 2022
Coram: Piyush Agrawal, J.
Decision Date: 03.11.2023
Disposal Nature: Allowed; remanded for decision on merits

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