Great Heights Developers LLP Vs Additional Commissioner
Date: January 31, 2024
Subject Matter
Belated filing of an appeal to de condoned due to the taxpayer’s illness
Summary
The case involves the belated filing of an appeal due to the petitioner’s illness. The petitioner challenged the imposition of penalty and interest under the CGST Act. Despite the usual limitation of the Appellate Authority's power to condone delays beyond 120 days, the Madras High Court directed the Authority to consider the appeal due to the petitioner's genuine reasons for the 24-day delay, coupled with valid medical reasons. The petitioner had fulfilled its tax liabilities, and the appeal focused solely on penalty and interest.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner challenges order in original dated 14.08.2023 insofar as the imposition of penalty and interest under Section 73(9) and Section 73(7) of the Central Goods and Services Tax Act, 2017 (the CGST Act) are concerned. The petitioner states that pursuant to how cause notice, the impugned assessment order was issued on 14.08.2023. Such order was received by the petitioner on 16.08.2023. Accordingly, the appeal should have been filed within 90 days thereof. It is further stated that the appeal could not be filed in time both on account of the petitioner being diagnosed with septic shock and on account of the consequential difficulties in following up with the consultant. As a result, it is stated that the time limits for filing an appeal with an application to condone delay expired on 16.12.2023.
2. Under Section 107 of the CGST Act, the Appellate Authority does not have the power to condone delay beyond 120 days. In this case, the period of further delay is only 24 days and the petitioner has provided cogent reasons to explain such delay. It is pertinent to note that the petitioner has paid the entire tax liability and the proposed appeal is limited to penalty and interest.
3. Therefore, the Appellate Authority is directed to receive and dispose of the appeal on merits if the appeal is received within a maximum period of ten days from the date of receipt of a copy of this order.
4. P.No.1324 of 2024 is disposed of on the above terms. No costs. Consequently, W.M.P.No.1358 of 2024 is closed.