GST: Delay in filing appeal beyond the prescribed limit can't be condoned by AAR [Read Order]

The Delhi Appellate Authority for Advance Ruling ( AAAR ) comprising Smt. Mallika Arya, Member (Centre), and Shri Ankur Garg, Member (State) held that delay in filing an appeal beyond the prescribed limit can’t be condoned.

The Indian Institute of Corporate Affairs (IICA) the Appellant is a society registered under Section 12A/12AA of the Income Tax Act, 1961 vide registration no. 12A/2009-10/1-1290/593 dated 19.08.2009 and had exemption under Section 10(23C) (iv) and (v) of the Income Tax Act, 1961 for AY 2017-18 onwards.

The Appellant received a grant for executing specific charitable activities and the entire amount received was subject to actual utilization the Appellant had no right or possibility to generate any surplus out of the contract.The unspent balance (if any) is subject to a refund or directions of the donor and there was no reward or benefit offered other than the actual expenditures towards charitable purposes.The above facts have not been disputed by the AAR and being aggrieved challenged the order of AAR.

As per terms of Section 100 of the CGST Act, 2017 an appeal should be filed within 30 days from the date of communication of the advance ruling order that was sought to be challenged and the Appellate Authority is empowered to allow the appeal to be presented within a further period not exceeding 30 days if it is satisfied that the Appellant was prevented by sufficient cause from presenting the appeal within the initial period of 30 days.

It was observed that the appeal was hit by the limitation of time and the language of the Statute which confers power on the Appellate Authority to entertain the appeal by condoning the delay only up to 30 days after the expiry of 60 days.

The Bench held that the authority can’t entertain this appeal beyond the extended period under the proviso would render the phrase "not exceeding thirty days" as the Appellate Authority is not a "Court" and hence the power to condone beyond the prescribed period does not arise. The appeal was dismissed on grounds of time limitation.

To Read the full text of the Order CLICK HERE

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