The Tamil Nadu State Appellate Authority for Advance Ruling ( AAAR ) condoned the delay in filing appeal against classification and GST ( Goods and Services Tax ) rate of two wheeler seat cover, as it occurred due to Medical Condition.
M/S. Lions Seat Cushions Private Limited, the Appellant has stated that they are manufacturers of ‘seat covers’ for two wheelers, bikes and scooters and they had applied for Advance Ruling dated 17.06. 2022, with regard to classification and applicable rate of tax on the seat covers with the Authority for Advance Ruling vide their application dated 14.06.2022.
The Authority for Advance Ruling (AAR) vide Ruling No. 105/ AAR/ 2023 dated 05.09.2023 ruled that Two wheeler seat covers are classifiable under CTH 87149990 and it will attract GST @ 28% vide entry No. 174 of Schedule IV of Notification No.01/2017-CT(Rate) dated 28.06.2017.
The Appellant submitted that they have argued that the seat cover is not an accessory to Two wheelers under HSN 87149990, and that the seat cover is a part of the seat that merits classification under a specific entry 94019900, which attracts rate of tax at 18% only as per entry no.435A of Schedule Ill of Notification No.01/2017-CT( Rate ) dated 28.06.2017, as amended.
Since the filing of appeal by the appellant in the instant case was beyond the prescribed time limit of 30 days from the passing of Order No. 105/AAR/ 2023 dated 05.09.2023, we are of the opinion that this aspect as to whether the delay in filing the appeal could be condoned or not, needs to be ascertained, before proceeding to discuss the merits of the case.
The appellant claims that M.Arumugam, Managing Director of the company, who is a heart patient, was advised to be in rest for 3 weeks, and therefore, the relevant documents could not be handed over to the consultant on time. Now the aspect as to whether the appellant was prevented by a sufficient cause from presenting the appeal, is required to be determined.
From the documents furnished by the appellant relating to the medical condition of M.Arumugam, MD, it is seen that he was admitted to Apollo Hospitals, Chennai, underwent a CABG surgery on 09.02.2023, and was under medication thereafter. Meanwhile, under a medical certificate dated 11.10.2023 issued by Dr. S.Pa1anivel Rajan, Salem, it is seen that M.Arumugam has been advised to take rest for three weeks, as he had chest pain.
The AAAR comprising of Ashish Varma and Dr. D Jagannathan observed that M Arumugam, MD, had a condition that required medical care. It was viewed that during the period around 17.10.2023, which was the last date under normal circumstances for filing the appeal, he had experienced chest pain which necessitated complete rest for three weeks from 11. 10.2023 onwards.
Since the appellant has presented sufficient cause that prevented them from filing the appeal within the normal period, the authority held that delay of 21 days in filing the appeal by the appellant beyond the normal time limit of 30 days is condoned in terms of proviso to Section 100(2) of CGST Act, 2017.
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