Facts of the Case

M/s Micro Zone, a sole proprietorship firm based in Purnea, Bihar, had filed a delayed appeal against an assessment order, which was rejected by the appellate authority (Annexure-5) on the ground that it was filed beyond the limitation period. Section 107 of the Bihar Goods and Services Tax Act allows three months for filing an appeal, extendable by a further one month on satisfactory explanation for the delay; the petitioner's appeal had been filed beyond even this extended one-month window. During the pendency of these proceedings, the Central Board of Indirect Taxes and Customs issued Notification No. 53/2023-Central Tax dated 02.11.2023, which extended the time for filing appeals against orders passed under Sections 73 and 74 of the BGST Act on or before 31.03.2023, subject to conditions, up to 31.01.2024.

Issues Involved

  1. Whether the appellate authority's rejection of the appeal as time-barred, prior to the issuance of Notification No. 53/2023, could be reconsidered in light of the subsequent amnesty notification.
  2. Whether the petitioner was entitled to restoration of the appeal subject to the payment conditions prescribed in the Notification.

Petitioner's Arguments

  • The petitioner sought restoration of the delayed appeal, relying on the subsequently issued CBIC Notification No. 53/2023, which permitted filing (or treating as validly filed) appeals against Section 73/74 orders passed on or before 31.03.2023, on or before 31.01.2024, subject to specified pre-deposit conditions.

Respondent's Arguments

  • The Union of India, represented by the Additional Solicitor General, did not dispute the applicability of the special procedure under Notification No. 53/2023 to appeals of this nature, once the prescribed conditions were satisfied.

Court Order/Findings

  • The Court reiterated the settled position that neither the Appellate Authority nor the High Court under Article 226 can condone delay in filing an appeal beyond the period specifically provided in the statute.
  • However, the Court held that Notification No. 53/2023 effectively extended the time for filing (or treating as filed) a delayed appeal against Section 73/74 orders up to 31.01.2024, subject to payment of the admitted tax/interest/penalty in full and 12.5% of the remaining disputed tax (of which at least 20% must be debited from the Electronic Cash Ledger), capped at Rs.25 crore.
  • Since the petitioner's appeal had already been filed and dismissed by the first Appellate Authority, the Court held it was only proper that the appeal be restored to the file of the Authority, subject to the conditions in paragraph 3 of the Notification being satisfied.
  • The impugned order rejecting the appeal was set aside on condition that the petitioner satisfies the Notification's payment conditions by 31.01.2024, failing which the impugned order would stand automatically restored.

Important Clarification

  • CBIC Notification No. 53/2023-Central Tax operates as a limited amnesty for appeals against Section 73/74 orders passed on or before 31.03.2023, effectively overriding the ordinary limitation bar under Section 107(4) of the BGST/CGST Act, but strictly conditional on payment of the prescribed pre-deposit, including the mandatory 20% cash-ledger component.
  • Restoration of a time-barred appeal under the Notification is not automatic; it is expressly conditional, and non-compliance results in automatic revival of the original rejection order.

Sections Involved

  • Section 107, Bihar Goods and Services Tax Act, 2017 — limitation for filing appeals before the Appellate Authority.
  • Sections 73 and 74, Bihar Goods and Services Tax Act, 2017 — orders determining tax liability, against which the appeal in question was directed.
  • Article 226, Constitution of India — writ jurisdiction invoked by the petitioner.
  • CBIC Notification No. 53/2023-Central Tax, dated 02.11.2023 — special procedure extending time for filing/restoring delayed appeals against Section 73/74 orders.

Decision – In Favour of

The writ petition was allowed and the order rejecting the delayed appeal was set aside, restoring the appeal for consideration on merits, in favour of the assessee, subject to compliance with the pre-deposit conditions of Notification No. 53/2023 within the stipulated deadline.

Related Case Laws

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

Case Details

  • Court: High Court of Judicature at Patna
  • Case No.: Civil Writ Jurisdiction Case No.16902 of 2023
  • CNR: Not available
  • Coram: Hon'ble the Chief Justice and Hon'ble Mr. Justice Rajiv Roy
  • Decision Date: 05.12.2023
  • Disposal Nature: Allowed - impugned rejection of delayed appeal set aside; appeal to be restored subject to conditions under CBIC Notification No. 53/2023 (Section 107 BGST Act)

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