GST Update

Desk of CA Praveen Sharma – 922 Series (CAPS)

Calcutta High Court in the case of Key Business Consultants Private Limited

The Calcutta High Court examined a writ petition challenging the dismissal of a GST appeal by the appellate authority solely on the ground of limitation.

The original order relating to GST refund was passed in February 2020, and the taxpayer’s appeal was first rejected in March 2021 citing delay in filing.

The petitioner contended that the delay ought to have been condoned, as the Supreme Court had extended limitation periods during the COVID-19 pandemic.

In November 2023, CBIC introduced an amnesty scheme permitting taxpayers, whose appeals were rejected only on limitation grounds, to refile their appeals by 31 January 2024.

Relying on this amnesty, the petitioner refiled the appeal on 3 January 2024 within the prescribed time.

However, the appellate authority again dismissed the appeal, treating it as time-barred under Section 107 of the GST Act.

The High Court observed that the appeal had been rejected purely on limitation and not due to any procedural or substantive defect.

The Court held that once CBIC allowed refiling under the amnesty scheme, the appellate authority could not invoke the limitation bar again.

Accordingly, the impugned appellate order was set aside and the appeal was restored for fresh adjudication, with no order as to costs.

LINK:CA. Praveen Sharma on Linkedin

Regards
CAPS