The Tamil Nadu State Appellate Authority for Advance Ruling ( AAAR ) refused to condone 920 days delay in filing appeal , it was observed that the delay condonation allowable only up to 30 days from initial 3 month appeal filing deadline.
M/S Arun Cooling Home, the appellant challenged the order passed by the Tamil Nadu State Authority for Advance ruling on the Application for Advance ruling filed by the Appellant. While filing the appeal the Appellant had paid Rs. 10,000/- only towards SGST vide Form DRC-03.
The Appellant has also filed petition for condonation of delay as they had filed the subject appeal on 07.11.2023, after a delay of 920 days, whereas as per Section 100(2) of the CGST Act, 2017, 30 days is the time limit for filing appeal from the date of receipt of the order.
It was stated that he suffered from covid during the period of pronouncing the verdict and he was advised by his doctor to be in rest for 2 years as he is a senior citizen and that he should not take any stress. The Appellant stated that it was because of the said reason they were unable to file the appeal within the stipulated time limit.
The Appellant is engaged in cold storage of agricultural produce like tamarind, apple, dates, potato, tomato and chillies. They had approached the Authority for Advance Ruling (AAR) with the question “Whether the service of cold storage of tamarind inner pulp without shell and seeds are exempted under the purview of the definition of Agricultural produce vide Notification No. 11/2017 and 12/2013CT(Rate) dated 28.06.2017?”
The AAR ruled that ‘The tamarind inner pulp without shell and seeds is not an ‘Agricultural produce’ as defined under explanation 2(d) of the Notification No. 12/ 2017-CT(Rate) dated 28.06.2017 and therefore the service of cold storage of such tamarind are not exempted under Sl.No.54(e) of Notification NO. 12/2017ST (Rate) dated 28.062017.”
The AAR viewed that the product, tamarind is processed by drying the same under the sun, by beating with wooden sticks to remove the pod, hammered to deseed and destring for extraction of endocarp/pulp and these processes are done as ‘Cottage Industry’. Hence the product would not fall under the term ‘Agricultural Produce’ as defined under explanation 2(d) of the Notification No. 12/2017-CT(Rate) dated 28.06.2017. For the same reason, the exemption at Sl.No.54 of the said Notification was not extended.
Before the appellate tribunal, it contended that tamarind is a fruit, the outer cover of the tamarind pods are removed by the farmers themselves; then the seeds and strings are removed and no machineries were deployed; the removal of shell and seed is not a process as mentioned under explanation 2(d) of the Notification No. 12/2017-CT (Rate) dated 28.06.2017. They further added that the supporting service making tamarind fit for primary market it exempted under the Act.
As per the statute, the Appellate Authority can condone a delay of 30 days beyond the normal period of thirty days given for filing the appeal provided, sufficient cause is shown by the Appellant. In the present case, there is a delay of 920 days which is way beyond the power of the Appellate authority to condone, let alone examining as to whether sufficient cause was shown by the Appellant.
It was evident that the Appellate Authority is empowered to condone the delay of only a period of 30 days after the expiry of the initial period for filing appeal. As far as the language of Section 100 of the CGST Act, 2017 is concerned, the crucial words are ‘not exceeding thirty days’ used in the proviso to sub-section (2).
The AAAR comprising of Ashish Varma and Dr. D. Jagannathan held that “No principle of interpretation would justify such a result. Notwithstanding the above, the Appellate Authority is not a ‘Court’ and hence the power to condone beyond the prescribed period does not lie with it.”
Since, the appeal cannot be allowed to proceed on account of time limitation, the authority dismissed the appeal.
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