Case Law Details
Lucky Traders Vs State Tax Officer (Madras High Court)
The Madras High Court recently addressed a petition from Lucky Traders challenging a tax assessment order dated March 29, 2021. The petitioner contended that they were not given a fair chance to dispute the tax demand.
The taxpayer sought to file an appeal under Notification No. 53/2023-Central Tax, which allows appeals for orders issued on or before March 31, 2023, if the original appeal deadline under Section 107 of the GST Act was missed or the appeal was rejected solely due to delay. Lucky Traders fell into the category of those who missed the initial deadline. The notification stipulated that such appeals could be filed by January 31, 2024.
The State Tax Officer argued that the petitioner had been given ample opportunity, including a show-cause notice and a hearing on March 16, 2021, which the assessee subsequently failed to attend.
The High Court, noting the writ petition was filed on January 9, 2024 (before the notification’s cut-off), ruled that the period the writ petition was pending should be excluded. Consequently, the court granted Lucky Traders permission to file an appeal within seven days of receiving the order copy, provided they meet the conditions of Notification No. 53/2023. The appellate authority is directed to hear the appeal on its merits if filed compliantly. This decision, while not a ruling on the merits of the tax demand, provides a procedural reprieve based on the specific notification.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
The petitioner challenges an assessment order dated 29.03.2021 primarily on the ground that she was not provided a reasonable opportunity to contest the tax demand.
2. Learned counsel for the petitioner submits that the petitioner intends to file an appeal against the impugned order, if she is permitted to do so under Notification No.53/2023-Central Tax dated 02.11.2023 (Notification No.53/2023).
3. Mr. V.Prasanth Kiran, learned Government Advocate, accepts notice on behalf of the respondent. He submits that the impugned order was issued after providing a reasonable opportunity to the petitioner, including by way of show cause notice which was served on the petitioner in March 2021. He also points out that the assessee appeared before the assessing officer on 16.03.2021 and that in spite of being provided hearing opportunities thereafter, the assessee chose not to appear.
4. Notification No.53/2023 has been placed on record. The said notification is applicable to assessment orders issued on or before 31.03.2023. The assessment order in this case was issued on 29.03.2021. The said Notification applies to assessees who could not file an appeal within the time limit specified in Section 107 of the applicable GST enactment or whose appeal was rejected solely on the ground of delay. The petitioner herein would fall within the first category. As per the Notification, such appeals may be received if filed on or before 31.01.2024. In the case at hand, the petitioner presented this writ petition on 09.01.2024, which is prior to 31.01.2024. In these circumstances, the petitioner makes out a case to exclude the period when the writ petition had been filed and was pending before this Court. If such period is excluded, the petitioner is in a position to present and prosecute an appeal in terms of Notification No.53/2023.
5. Therefore, without expressing any opinion on the merits of the W.P.No.3435 of 2024 matter, the petitioner is granted leave to present an appeal in terms of Notification No.53/2023 provided such appeal is filed within a maximum period of seven days from the date of receipt of a copy of this order and subject to fulfilment of conditions specified in Notification No.53/2023. If the appeal is filed in compliance with the above conditions, the appellate authority shall receive and dispose of such appeal on merits.
6. The writ petition is disposed of on the above terms. There will be no order as to costs. Consequently, connected miscellaneous petition is closed.
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