The Allahabad High Court has held that 4 months limit should be liberally interpreted and restored the appeal filed under section 107 of the Uttar Pradesh Goods and Services Tax Act, 2017 on the 121st day.
Shri Ram Ply Product, the petitioner sought to set aside the order passed by the Additional Commissioner Grade-2 (Appeal) for the year 2021-22. It was stated that the appeal instituted by the petitioner was dismissed because it was beyond the maximum period, as prescribed under the statute i.e. four months.
The prescribed authority had confirmed the demand of Rs. 49.74 Lakhs vide order dated 07.06.2022. The appellate authority has computed four months as each month would be 30 days.
Section 107 of the Uttar Pradesh Goods and Services Tax Act, 2017 provides that an appeal, against any decision or order passed under this Act or the State Goods and Services Tax Act by the adjudicating authority, may be filed before the appellate authority within the prescribed period of three months from the date on which the said order is communicated to the person concerned.
Sub-Section (4) of Section 107 of the Act, 2017 provides that the appellate authority may, if it is satisfied that the appeal was prevented by sufficient cause from presenting it within the period of three months, may allow it to be presented within a further period of one month.
It was viewed that it is not 120 days, but it is four months and, therefore, it would depend upon the date on which date the adjudicating authority passes the order. The four months may be of 121 days or 122 days.
A single-judge bench comprising Justice Dinesh Kumar Singh observed that the four months in the appellant’s case come with around 121 days and the appeal was filed on the 121st day. The appellate authority should have entered into the merit of the application whether it disclosed sufficient cause for not filing the appeal within the period of three months instead of entering into the merit of the application to find out whether the appellant/petitioner had a sufficient cause which preventing him from presenting the appeal within a period of three months.
The Court viewed that the appeal has been summarily dismissed only on the ground that it was beyond 120 days, and not within 120 days.
After considering the action of the appellate authority, the Court restored the appeal to the Appellate Authority and directed them to proceed with the appeal and decide the same on merit. While allowing the petition, the Court quashed the impugned order.
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