Facts of the Case

The petitioner, M/S Ankit Motors, challenged an order dated 25.08.2022 dismissing its appeal against an original order dated 27.10.2021, on the ground that the appeal, filed on 30.06.2022, was barred by limitation under Section 107 of the GST Act. The writ was entertained given that no GST Tribunal has yet been constituted in Uttar Pradesh.

Issues Involved

  1. Whether the appellate authority correctly computed the limitation period without accounting for the Supreme Court's COVID-19 limitation-extension order.
  2. Whether the appeal, held time-barred at the appellate stage, deserved to be restored for decision on merits.

Petitioner's Arguments

  • The petitioner submitted it was entitled to the benefit of the Supreme Court's extension of limitation in Miscellaneous Application No.21 of 2022 in Suo Motu Writ Petition No.03 of 2020, which granted a fresh 90-day limitation period from 01.03.2022 in cases where limitation would otherwise have expired between 15.03.2020 and 28.02.2022 (or the actual balance period, if longer).

Respondent's Arguments

  • The State's counsel supported the appellate authority's finding that the appeal was time-barred under Section 107 of the GST Act.

Court Order / Findings

  • The Court found that the Supreme Court's COVID-19 limitation-extension direction gave the petitioner a fresh 90-day period from 01.03.2022, extendable by a further 30 days under the Appellate Authority's condonation power in Section 107(4).
  • The Court held that the appellate authority's order had failed to consider this second limb of the Supreme Court's direction, and accordingly set aside the order dated 25.08.2022, remanding the appeal for decision on merits.
  • Delay in filing the appeal was condoned in view of the Supreme Court's direction.

Important Clarification

  • Where a GST appeal was filed during the COVID-19 period, the Supreme Court's limitation-extension order in Suo Motu W.P. No.03 of 2020 (granting a fresh 90-day period from 01.03.2022, or the longer balance period, whichever is greater) must be applied before an appeal is dismissed as time-barred under Section 107; an appellate order that overlooks this direction is liable to be set aside and the appeal restored on merits.
  • This benefit operates independently of, and in addition to, the Appellate Authority's own discretionary power to condone a further 30 days' delay under Section 107(4) of the GST Act.

Sections Involved

  • Section 107 of the CGST/UP GST Act, 2017 - prescribes the limitation period for filing appeals and the Appellate Authority's power to condone delay under sub-section (4).

Decision – In Favour of

The writ petition was allowed in favour of the Assessee; the appellate order was set aside and the appeal restored for decision on merits.

Case Details

High Court of Judicature at Allahabad, Writ Tax No. 1355 of 2022, Neutral Citation 2023:AHC:211128; Coram: Hon'ble Piyush Agrawal, J.; decided on 3 November 2023.

Link to Download the Order

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