Section 5 Of Limitation Act Does Not Apply To Section 107 Of CGST Act: Allahabad High Court

The Allahabad High Court has held that Section 5 of the Limitation Act, 1963 does not apply to appeals filed under Section 107 of the Central Goods and Services Tax Act, 2017.

“The Central Goods and Services Act is a special statute and a self-contained code by itself. Section 107 of the Act has an inbuilt mechanism and has impliedly excluded the application of the Limitation Act. It is trite law that Section 5 of the Limitation Act, 1963 will apply only if it is extended to the special statute. Section 107 of the Act specifically provides for the limitation and in the absence of any clause condoning the delay by showing sufficient cause after the prescribed period, there is complete exclusion of Section 5 of the Limitation Act,” held Justice Shekhar B. Saraf.

Petitioner's appeal under Section 107 of the Central Goods and Services Tax Act, 2017 was dismissed by the Additional Commissioner, Grade-II (Appeal)-1st, Commercial Tax, Agra as being time barred. It was stated that the appeal was filed after a period of 28 months when the statute provided a limitation of 4 months.

The Court relied on Singh Enterprises v. Commissioner of Central Excise, Jamshedpur and Others and Commissioner of Customs and Central Excise v. Hongo India Private Limited and Another wherein the Supreme Court had upheld the High Court's order not condoning the delay in tax cases and holding that the High Court does not have the power to condone the delay under taxation laws.

Accordingly, the writ petition was dismissed.

Case Title: M/S Garg Enterprises vs. State Of U.P. And 2 Others 2024 LiveLaw (AB) 47 [WRIT TAX No. - 291 of 2022]

Case Citation: 2024 LiveLaw (AB) 47

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