GST Appeal Delay: Counsel Death, Time Granted

Star Yarn Vs State Tax Officer (INT) (Madras High Court)

Madras High Court addressed a writ petition filed by Star Yarn, challenging a detention order and a related summary order under the Goods and Services Tax (GST) framework. The petitioner’s counsel explained that the delay in filing an appeal was due to the demise of their previous counsel on record, which prevented them from obtaining timely legal advice. Additionally, the petitioner had already paid the full disputed tax amount along with a 200% penalty. Consequently, they requested the court to grant them the liberty to file an appeal despite the delay. The court, after hearing both parties, acknowledged the petitioner’s explanation regarding the counsel’s death. Despite the significant time lapse of approximately two and a half years since the impugned order was issued, the court decided to grant the petitioner an opportunity to file an appeal.

The High Court’s decision focused on providing a fair opportunity for the petitioner to pursue their appeal, considering the extenuating circumstances. The court granted Star Yarn two weeks from the date of receiving a copy of the order to file their appeal before the Appellate Authority. The court also directed the Appellate Authority to consider the appeal on its merits, without insisting on the limitation period, and to pass appropriate orders after hearing the petitioner. This decision highlights the court’s willingness to accommodate delays caused by unforeseen events, such as the death of a legal representative, and to ensure that taxpayers have access to appellate remedies. The court’s directive to the Appellate Authority to disregard the limitation period underscores a commitment to substantive justice over procedural technicalities in such cases.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

This Writ Petition has been filed by the petitioner seeking to call for the records of the impugned order of detention in Form GST MOV-09, Order No.54/2022-23 dated 07.06.2022 read with summary of the order in Form GST DRC-07 Ref No.ZD330822015108R dated 22.08.2022.

2. Though larger relief has been sought for in the present writ petition, when the matter is taken up for hearing today, learned counsel appearing for the petitioner would submit that, due to the demise of the petitioner’s earlier counsel on record, the petitioner was not in a position to get appropriate advice and hence, they could not file an appeal in time. Further, the petitioner has remitted the entire disputed tax amount with 200% penalty. Hence, he prayed to grant liberty to file an appeal.

3. Heard the learned counsel for the petitioner as well as the learned Government Advocate for the respondent and perused the materials available on record.

4. Though the respondent has passed the impugned order on 07.06.2022 and already 2 ¹/₂ years have been lapsed, considering the submissions made by the learned counsel for the petitioner that since the petitioner’s earlier counsel on record passed away, the petitioner was not in a position to file an appeal, this Court is inclined to grant liberty to file an appeal. Accordingly, liberty is granted to file an appeal before the Appellate Authority within a period of two weeks from the date of receipt of a copy of this order. On filing of appeal by the petitioner, the Appellate Authority shall consider the same and pass appropriate orders on merits and in accordance with law, after hearing the petitioner, as expeditiously as possible, without insisting upon limitation aspect.

5. With the above directions, the writ petition is disposed of. There is no order as to costs.