Facts of the Case

The petitioner, Manth Green Private Limited, having a place of business near Vrindavan Nursing Home, Salimpur Ahra, Off Exhibition Road, Patna, an assessee under the Bihar Goods and Services Tax Act, 2017, approached the High Court of Judicature at Patna challenging an ex parte assessment order dated 29.01.2021 passed by the Assessing Authority. The petitioner had not availed the statutory appeal under Section 107 of the BGST Act, and by the time of the writ, the ordinary three-month limitation period (extendable by one further month on sufficient cause) for filing such an appeal had long expired. The matter was specially listed ahead of its scheduled date because the Central Board of Indirect Taxes and Customs had, in the interim, issued Notification No. 53/2023-Central Tax dated 02.11.2023 (S.O. 4767(E)), extending the time for filing appeals against orders passed under Sections 73 and 74 of the BGST Act on or before 31.03.2023.

Issues Involved

  1. Whether the petitioner, whose statutory limitation for filing an appeal under Section 107 of the BGST Act had already expired, could still avail an appeal remedy in light of CBIC Notification No. 53/2023-Central Tax.
  2. Whether the Court or the Appellate Authority could condone delay in filing an appeal beyond the period specifically provided by statute, absent such a notification.
  3. What conditions under the Notification had to be satisfied for the appeal to be validly filed and considered on merits.

Petitioner's Arguments

  • The ex parte assessment order dated 29.01.2021 was liable to be challenged, and the petitioner sought the benefit of the newly issued Notification No. 53/2023-Central Tax to file a delayed appeal against it.

Respondent's Arguments

  • No specific opposing arguments are recorded; the State's counsel appeared and the matter proceeded on the basis of the newly issued Notification and the statutory scheme under Section 107 of the BGST Act.

Court Order/Findings

  • Neither the Court under Article 226 nor the Appellate Authority could condone delay in filing an appeal beyond the period specifically provided by the BGST Act, where a specific limitation period is prescribed by statute.
  • Notification No. 53/2023-Central Tax dated 02.11.2023 extends the time for filing an appeal against orders passed under Sections 73 or 74 of the BGST Act on or before 31.03.2023, permitting such an appeal to be filed up to 31.01.2024, subject to payment of the admitted tax/interest/fine/penalty in full and 12.5% of the remaining disputed tax (of which at least 20% must be debited from the Electronic Cash Ledger), subject to a cap of Rs. 25 crore, and subject to the other conditions of the Notification.
  • The petitioner was directed to file an appeal satisfying these conditions on or before 31.01.2024, in which event the appeal would be taken up and considered on merits; if the conditions were not satisfied, the appeal would necessarily be rejected.
  • The Court also directed the Commissioner, State Taxes, Government of Bihar to issue instructions enabling officers to restore and consider appeals — including those where writ petitions challenging delay-based rejection had themselves been dismissed by the Court — where the Notification's conditions are complied with.

Important Clarification

CBIC Notification No. 53/2023-Central Tax dated 02.11.2023 gives taxpayers, including those whose ordinary limitation under Section 107 of the BGST/CGST Act has already expired, a fresh window up to 31.01.2024 to file an appeal against orders passed under Sections 73 or 74 on or before 31.03.2023, but only on payment of the admitted dues in full and 12.5% of the disputed tax (20% of that amount from the Electronic Cash Ledger), subject to a Rs. 25 crore cap; courts cannot condone delay beyond the statutory period independently of such a notification.

Sections Involved

  • Section 107, BGST Act, 2017 — provides the appellate remedy and the limitation period (three months, extendable by one month) for filing an appeal.
  • Sections 73 and 74, BGST Act, 2017 — the demand provisions under which the underlying orders eligible for the extended appeal window were passed.
  • Notification No. 53/2023-Central Tax, dated 02.11.2023 — the special amnesty procedure extending the appeal filing window to 31.01.2024 subject to conditions.

Decision – In Favour of

This is a disposal with directions, in part in favour of the Assessee. The Court did not adjudicate the merits of the ex parte assessment; instead, it gave the petitioner a fresh, conditional opportunity to pursue a statutory appeal under the amnesty Notification, contingent on payment of admitted dues and 12.5% of the disputed tax, with the appeal to be rejected outright if those conditions are not met.

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.5166 of 2023
  • CNR: Not available
  • Coram: Hon'ble The Chief Justice K. Vinod Chandran and Hon'ble Mr. Justice Rajiv Roy
  • Decision Date: 9 November 2023
  • Disposal Nature: Disposed of with directions to file appeal under Notification No. 53/2023-Central Tax

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