Facts of the Case

The petitioner, M/S Ankit Motors, challenged an order dated 25.08.2022 by which its statutory appeal, filed against an original order dated 22.09.2021, was dismissed as barred by limitation under Section 107 of the GST Act. The original order had been passed against the petitioner on 22.09.2021, and the appeal against it was filed on 30.06.2022. The Allahabad High Court was called upon to examine whether the delay in filing the appeal stood covered by the Supreme Court's COVID-19 limitation-extension order passed in Miscellaneous Application No. 21 of 2022 in Suo Motu Writ Petition No. 3 of 2020.

Issues Involved

  1. Whether the petitioner is entitled to the benefit of the Supreme Court's limitation-extension order for filing the GST appeal under Section 107.
  2. Whether the Appellate Authority erred in failing to consider the second limb of the Supreme Court's direction, namely that a longer balance period of limitation (if greater than 90 days) would apply.

Petitioner's Arguments

  • Under the Supreme Court's order, where limitation would have expired between 15.03.2020 and 28.02.2022, all persons are entitled to a limitation period of 90 days from 01.03.2022, or the longer remaining balance period if that period exceeds 90 days.
  • Applying this direction, the petitioner had 90 days from 01.03.2022, extendable further by the Appellate Authority's power under Section 107(4) to condone delay by another 30 days for sufficient cause.
  • The Appellate Authority's order failed to consider the second part of the Supreme Court's direction regarding the longer balance period.

Respondent's Arguments

  • The State, represented through the learned Standing Counsel, did not advance any independent submission resisting the petitioner's construction of the Supreme Court's limitation order in the course recorded by the Court.

Court Order/Findings

  • The second part of the Supreme Court's direction — regarding application of the longer balance period of limitation where it exceeds 90 days from 01.03.2022 — had not been considered by the Appellate Authority, rendering its order dated 25.08.2022 unsustainable.
  • The order dated 25.08.2022 was set aside and the matter remanded for decision of the appeal on merits.
  • Delay was condoned in view of the Supreme Court's direction.

Important Clarification

The Supreme Court's COVID-19 limitation-extension order in Suo Motu Writ Petition No. 3 of 2020 applies to appeals filed under Section 107 of the GST Act. Where limitation would have expired between 15.03.2020 and 28.02.2022, the assessee gets 90 days from 01.03.2022, or the longer remaining balance period if it exceeds 90 days — and this longer-period limb must be independently examined by the Appellate Authority before an appeal is rejected as time-barred, in addition to the Authority's own power under Section 107(4) to condone a further 30 days' delay for sufficient cause.

Sections Involved

  • Section 107, GST Act, 2017 — provides for appeal against an adjudication order to the Appellate Authority, along with the prescribed limitation.
  • Section 107(4), GST Act, 2017 — empowers the Appellate Authority to condone delay of up to one further month for sufficient cause.

Decision – In Favour of

The decision is in favour of the Assessee. The appellate order rejecting the appeal as time-barred was set aside, delay was condoned by applying the Supreme Court's COVID limitation-extension order, and the matter was remanded to the Appellate Authority for a decision on merits — though the petitioner's substantive grievance on the original 2021 order still awaits adjudication.

Related Case Laws

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

Case Details

  • Court: Allahabad High Court
  • Case No.: WRIT TAX No. 1340 of 2022
  • CNR: 2023:AHC:198469
  • Coram: Hon'ble Justice Piyush Agrawal
  • Decision Date: 13 October 2023
  • Disposal Nature: Allowed (remanded)

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