The Madras High Court has condoned the delay in a GST matter involving mismatch in Input Tax Credit ( ITC ) in GSTR 3B and GSTR 2A. The appeal was rejected on ground that the delay was beyond the condonable period.
The appeal challenged an order dated July 12, 2024, from the first respondent – The Deputy Commissioner (ST) (FAC), GST Appeal, which rejected the petitioner’s appeal on the grounds that it was filed late and that the Tamil Nadu Goods & Services Tax Act ( TNGST ), 2017, does not provide for condonation of such delays.
The petitioner, Tvl.CANPLY, had contested an assessment order dated December 22, 2023, which imposed a tax liability of Rs. 54,03,412, including penalties, due to a mismatch between GSTR-3B and ITC auto-populated in GSTR-2A.
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Although the petitioner filed the appeal on May 2, 2024, along with a delay condonation petition, the Deputy Commissioner (ST) (FAC) dismissed it on the grounds of exceeding the statutory limitation period.
The Special Government Pleader argued that the limitation for filing the appeal expired on March 22, 2024, with an additional month for showing sufficient cause ending on April 22, 2024. Since the appeal was filed after these deadlines, the first respondent rejected it.
The Madras High Court determined that while the first respondent correctly noted the lack of a provision for delay condonation, the circumstances warranted a reconsideration. Justice N. Anand Venkatesh observed that the petitioner had already made a 10% pre-deposit and had not been given a prior opportunity to address the issues before the assessment order was finalised.
The contested GST order was set aside by the bench. It condoned the delay in filing the appeal, and directed the department to accept the appeal, issue a notice, provide an opportunity for personal hearing, and issue a final order within three months.
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Mr.G.Derrick Sam and Mr.G.Nanmaran, SGP appeared for the petitioner and department respectively.
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