The Allahabad High Court rejected the application filed under Section 5 of the Limitation Act, 1963 in appeals filed under Section 107 of the Uttar Pradesh Goods and Service Tax Act, 2017 (UPGST Act).
The writ petition is filed under Article 226 of the Constitution of India wherein the petitioner is aggrieved by the order dated January 23, 2023 passed under Section 107 of the Uttar Pradesh Goods and Services Tax Act, 2017. By virtue of the order, the appeal filed by the petitioner was dismissed on the ground of limitation, as the same was filed approximately 66 days beyond the date of limitation.
The Counsel on behalf of the petitioner has submitted that the appeal under Section 107 of the Act was filed beyond time. However, counsel on behalf of the petitioner relies on a Division Bench judgment of Calcutta High Court in the case of S.K. Chakraborty & sons vs. Union of India and others to argue that Section 5 of the Indian Limitation Act, 1963 would be attracted as Section 107 of the Act does not expressly or impliedly exclude the attraction of Section 5 of the Limitation Act.
Upon a perusal of Section 107 of the UPGST Act, it is clear that the appellate authority can only allow extension of a period of one month as provided in sub section (4) of Section 107 of the UPGST Act. In the present case, the appeal was filed approximately 66 days subsequent to the expiry of one month that was condonable under Section 107(4) of the UPGST Act.
The period within which the appeal could have been filed was three months plus a period of one month. However, in the present case the appeal was filed beyond the period of four months, and therefore, the appellate authority could not have condoned the delay even if sufficient cause was made out.
A Single Bench of Justice Shekhar B. Saraf observed that “Section 107 of the GST Act prescribes a specific limitation period within which appeals against certain decisions must be filed. This limitation period is integral to the functioning of the appellate mechanism under the GST Act and reflects the legislative intent to expedite the resolution of tax disputes. By imposing a time limit on the filling of appeals, Section 107 aims to prevent undue delayed in the adjudication process and promote the efficient administration of the GST regime. On the other hand, Section 5 of the Limitation Act provides for the extension of prescribed periods in certain exceptional circumstances, such as when sufficient cause is shown for the delay.”
“Taxing statutes like the GST Act embody a comprehensive framework with specific limitation provisions tailored to expedite the resolution of tax-related matters. Section 107 of the GST Act, operates as a complete code in itself, explicitly delineating limitation periods for filing appeals and implicitly excluding the application of general limitation provisions such as Section 5 of the Limitation Act” the Court added.
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