M Group Vs Assistant Commissioner of State Tax (Gujarat High Court)
The Gujarat High Court’s recent ruling in M/s. M Group v. Assistant Commissioner of State Tax [Special Civil Application No. 8503 of 2023 dated October 26, 2023] has significant implications for GST appeals, especially considering the recommendations of the 52nd GST Council Meeting. This article delves into the case background, issues raised, and the court’s decisive stance on the application of these recommendations.
Hon’ble Gujarat High Court disposed of the writ petition and held that the Revenue Department can take into consideration the recommendation of 52nd GST Council Meeting i.e. the time period for filing appeals will be allowed in cases where appeals are filed against the order passed on or before, March 31, 2023, up to January 31, 2024, while deciding the application for condonation for the delay.
Facts:
M/s. M Group (“the Petitioner”) is a partnership firm engaged in the business of supplying manpower services for the installation of Fiber optics etc. The Petitioner received a notice dated July 17, 2021 (“the Notice”) issued by the Revenue Department (“the Respondent”) under Section 61 of theCentral Goods and Services Tax Act, 2017(“the CGST Act”) for Financial Year 2018-2019. The Notice was issued to the Petitioner on the ground that the Petitioner ought to have provided the reason for the discrepancy in ITC. The Petitioner in response to the Notice filed reply dated September 17, 2021, provides an explanation along with documentary evidence in support of ITC claimed in GSTR-3B.
The Petitioner was issued a Show Cause Notice dated December 03, 2021 (“the SCN”) by the Revenue Department (“the Respondent”), under Section 61 of the CGST Act, interalia, stating that the Petitioner has claimed excess ITC to the extent of Rs.46,85,584/-, thereby asking the Petitioner to show cause as to why an order against it be passed. Thereafter, the assessment order dated April 06, 2022 (“the Impugned Order”) was passed against the Petitioner.
Aggrieved by the Impugned Order, the Petitioner filed a writ petition before the Hon’ble Gujarat High Court on the ground that no date for personal hearing was granted to the Petitioner. The Petitioner could not respond to the SCN as one of the persons was trying to secure Anticipatory Bail. The Petitioner further contended that, no opportunity was granted to the Petitioner to satisfy the Respondent as to why the Impugned Order passed was bad. Therefore, the Impugned Order passed in violation of Natural Justice.
The Petitioner thereafter, filed a rejoinder placing reliance upon the 52nd GST Council Meeting.
Issue:
Whether the recommendation of the 52nd GST Council Meeting pertaining to the time period for appeal can be considered while deciding the application for condonation for delay?
Held:
The Hon’ble Gujarat High Court in Special Civil Application No. 8503 of 2023 held as under:
