The Bombay High Court recently allowed Pepperfry Limited to submit a delayed response to a Goods and Services Tax ( GST ) Show Cause Notice (SCN), imposing a Rs. 50,000 cost for the delay.
Pepperfry Limited filed a writ petition after it was unable to submit a reply to the SCN issued by the Assistant Commissioner of State Tax, citing unavoidable circumstances that had led to the delay. The SCN, dated April 11, 2023, was initially issued to address specific GST compliance issues.
When Pepperfry failed to meet the deadline for submission, the company sought an extension, arguing that the delay was justifiable and not due to willful negligence. Represented by their counsel, the petitioner argued that there were sufficient grounds for condoning the delay, given the company’s proactive approach in attempting to resolve the issue once circumstances allowed.
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In reaching its decision, the Bombay High Court bench of Justices M.S. Sonak and Jitendra Jain, drew from its ruling in Writ Petition No. 4500 of 2024, which was disposed of earlier this month on similar grounds. This precedent informed the Court’s approach, leading to a consistent application of judicial principles in Pepperfry’s case.
As per the Court’s direction, the previous order dated July 3, 2023, was set aside, and the matter was remitted back to the tax authorities, allowing Pepperfry an additional two weeks to submit its reply.
The Court instructed the tax authorities to expeditiously consider the response and finalise the matter within eight weeks from the date of receiving the reply. Importantly, the judgement clarified that all contentions from both sides would remain open during subsequent proceedings, enabling a fair and comprehensive review.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
The grant of relief, however, came with a stringent condition that Pepperfry was to pay a sum of Rs. 50,000 to the Prime Minister’s Relief Fund within two weeks. The payment was not merely punitive but served as a necessary condition for activating the benefits of the High Court order.
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