GST Alert: High Court of Madras Directs GST Appeal on Merits
The High Court of Madras GST observed that the appellate authority GST must consider and dispose of the GST appeal on merits without going into the question of limitation, as provided under Section 107 CGST Act.
Case of Tvl. Sri Sai Traders v. Deputy Commissioner (ST), Goods and Services Tax Appeals; W.P. No. 12860 of 2024 (June 07, 2024)
Case Background: Tvl. Sri Sai Traders and GST Appeal on Merits
The present case involves a petitioner who challenged an order dated 31st October, 2023, issued against him. The appeal was rejected because it was filed on February 29th, 2024, which was 29 days beyond the three-month limitation period.
The petitioner requested the court to condone the delay in GST and consider the GST appeal on merits, arguing that the delay fell within the condonable period under relevant GST laws.
Court’s Observation on Limitation Period and GST Appeal based on Merits
The court noted that the petitioner was entitled to a 30-day extension for filing the appeal. Additionally, the impugned order had been issued without providing a proper hearing.
Considering these factors, the High Court of Madras GST set aside the order rejecting the appeal. The court directed the appellate authority GST to examine the GST appeal on merits, explicitly without considering the limitation issue. The court observed that the petitioner was entitled to seek a 30-day extension for filing the appeal and that the impugned order was issued without a proper hearing.
In light of these factors, the court set aside the order rejecting the appeal and directed the appellate authority to consider the appeal on merits without considering the limitation issue. Businesses facing similar appellate issues may benefit from aligned GST advisory and compliance services to strengthen documentation, filings, and litigation readiness.