Appeal To Be Decided On Merits Irrespective Of Some Laches Or Delay On Part Of Assessee: Rajasthan High Court
The Rajasthan High Court has held that a right to appeal as provided under the statute must be decided on merits irrespective of some laches or delay on the part of the assessee.The bench of Justice Shree Chandrashekhar and Justice Kuldeep Mathur has observed that the statutory provisions of limitation under Section 107 of the CGST Act would bind the statutory authority, which cannot condone...
The Rajasthan High Court has held that a right to appeal as provided under the statute must be decided on merits irrespective of some laches or delay on the part of the assessee.
The bench of Justice Shree Chandrashekhar and Justice Kuldeep Mathur has observed that the statutory provisions of limitation under Section 107 of the CGST Act would bind the statutory authority, which cannot condone the delay except the circumstances envisaged under the CGST Act, but limitations are not applied in a writ proceeding.
The petitioner/assessee challenged the order passed by the Joint Commissioner of the Central Goods and Service Tax and Central Excise at Jodhpur, by which the order was dismissed as barred by limitation.
The Joint Commissioner of the CGST referred to the provisions under Section 107 and the circular No. 148/04/2021-GST dated 18th May 2021 and formed an opinion that beyond the period of three months with the extended period of further one month if the appeal under Section 107 of the CGST Act, 2017 is not filed, it cannot be entertained by the appellate authority.
The Joint Commissioner of the CGST further held that since the appeal is not filed within the prescribed limit, an adjudication on merits cannot be rendered.
The CGST Act has been enacted to levy taxes on the manufacture of certain goods in the form of central excise duty and to consolidate certain provisions of service tax and interstate sale of goods in the form of central sales tax, as well as to levy tax by the state governments on retail sales in the form of value-added tax, entry of goods in the form of entry tax, luxury tax, etc. The provisions under the CGST Act, besides seeking levy and calculation of taxes, are also intended to facilitate commercial and business activities. The legislative intention in this regard is manifest in the provisions under Section 30 of the CGST Act. In the backdrop of legislative intent, the provisions under Section 107 of the CGST Act cannot be frustrated by mere technicalities.
The court held that the writ court has ample powers to condone the delay in preferring the appeal.
The court entertained the writ petition and quashed the order passed by the Joint Commissioner of CGST.
Counsel For Petitioner: Avin Chhangani
Counsel For Respondent: Kuldeep Vaishnav
Citation: 2024 LiveLaw (Raj) 194
Case Title: Shree Shakti Minerals Versus The Commissioner
Case No.: D.B. Civil Writ Petition No. 11763/2024