The Madras High Court has condoned the delay in filing a GST ( Goods and Services Tax ) appeal by an assessee who was allegedly engaged in business transactions with a non-existent entity on a pre-deposit of Rs. 25,000.
The writ petition was filed by the assessee-petitioner, Tvl. PGN Traders challenged the impugned order dated 09.12.2023 issued by the respondent-The Assistant Commissioner ( ST ) ( FAC ), raising jurisdictional questions regarding the issuance of a show-cause notice.
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The petitioner contended that the State GST Authorities lacked jurisdiction over the matter, as a similar show-cause notice had already been issued by the Central GST Authorities.
The petitioner’s counsel argued that the respondent had accused the petitioner of conducting business with a non-existent entity, M/s. R.R. Traders. Due to the need to gather documents to prove the existence of this entity, the petitioner was unable to file an appeal within the statutory period. Consequently, the petitioner sought the court’s leniency in condoning the delay and allowing them to present the necessary evidence in their defense.
The Additional Government Pleader representing the GST department asserted that the issues raised in the show-cause notice were distinct from those addressed by the Central GST Authorities. However, acknowledging the petitioner’s efforts to collect documents to support their case, the respondent did not object to the petitioner being allowed to file an appeal, provided a substantial amount was deposited as a precondition.
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Considering the submission of the petitioner, the court noted that “In the present case, today, the learned counsel for the petitioner has restricted his relief and requested this Court to condone the delay in filing the appeal before the concerned Authority on the basis that they had found some of the new documents, which will substantiate their case before the concerned Authority. In such case, this Court is of the view that the justice has to be rendered to the petitioner by providing an opportunity to present his case before the concerned Authority and hence, this Court is inclined to consider the submissions made by the petitioner, subject to the terms as contended by the respondent.”
Hearing the matter, Justice Krishnan Ramasamy decided that justice would be best served by granting the petitioner an opportunity to present their case. The court emphasized the importance of providing the petitioner with a fair chance to substantiate their claims before the concerned authority.
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Thus, the court condoned the delay in filing the appeal against the impugned assessment order, conditional upon the petitioner paying Rs. 25,000 to the respondent, and directed the petitioner to file the appeal before the concerned Appellate Authority within 30 days of receiving a copy of the order, including proof of payment. The Appellate Authority was instructed to consider the appeal on its merits, in accordance with the law, and to provide the petitioner with sufficient opportunity without enforcing the limitation period.
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