Dismissal of GST Appeal as Time-Barred: Chhattisgarh HC allows relief under CBIC Circular with stay on Recovery [Read Order]
The Court noted that the State did not oppose the relief and permitted the petitioner to file an undertaking to approach the Appellate Tribunal once it becomes operational and to make the required pre-deposit within 30 days.
GST - Appeal - Dismissal - Taxscan
GST - Appeal - Dismissal - Taxscan
The High Court of Chhattisgarh,allowed relief in time-barred Goods and Service Tax (GST) appeal under Central Board of Indirect Taxes and Customs ( CBIC ) Circular, granting stay on recovery.
Hari Shankar Patel,petitioner-assessee,filed a petition against the order dated 15.04.2025, as respondent No.2 dismissed his appeal under Section 107(11) of the Central Goods and Service Tax ( CGST ) Act, 2017, citing delay.
The petitioner counsel submitted that on 07.08.2024, respondent No.3 passed an ex-parte order imposing a penalty and tax of ₹8,56,562/-. A rectification application filed on 09.08.2024 was dismissed on 11.12.2024, after which an appeal was filed on 17.03.2025. He argued that the appellate authority wrongly calculated the limitation period without considering the rectification order date.
He referred to a Madras High Court ruling holding that the limitation should start from the rectification rejection date and claimed that dismissing the appeal without examining the merits was improper. He also requested disposal of the petition based on CBIC Circular No.224/18/2024-GST, which extended the limitation period until the Appellate Tribunal became functional.
The State counsel did not oppose this.
The court considered the submissions and noted the guidelines on recovery of dues until the Appellate Tribunal became operational. It held that nothing remained for adjudication in the writ petition. The petitioner was allowed to file an undertaking under CBIC Circular No.224/18/2024-GST dated 11.07.2024, agreeing to file an appeal before the Appellate Tribunal once it became functional and to pay the required pre-deposit within 30 days.
Justice Deepak Kumar Tiwari ordered that recovery would remain stayed if the undertaking was filed but clarified that failure to deposit the amount within the given time would make the order ineffective. The writ petition was disposed of accordingly.
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