Hari Shankar Patel Vs State of Chhattisgarh (Chhattisgarh High Court)
Chhattisgarh High Court in Hari Shankar Patel v. State of Chhattisgarh examined the issue of limitation for filing appeals under the Chhattisgarh Goods and Services Tax Act, 2017 (CGST Act). The petitioner had challenged an order dated 15 April 2025, whereby his appeal was dismissed under Section 107(11) of the CGST Act for being filed beyond the prescribed period.
The petitioner argued that the adjudicating authority had passed an ex-parte order on 7 August 2024, imposing tax, penalty, and interest of ₹8.56 lakh. He sought rectification under Section 161 on 9 August 2024, which was rejected on 11 December 2024. His appeal was filed on 17 March 2025. The petitioner contended that the limitation period should be reckoned from the rejection of the rectification application and relied on the Madurai Bench of the Madras High Court decision in M/s SPK and Co. v. State Tax Officer (W.P.(MD) Nos. 27787 and 27788/2024, order dated 22 November 2024). That decision held that limitation for challenging an assessment order begins from the date of rejection of the rectification application.
The Court also took note of CBIC Circular No. 224/18/2024-GST dated 11 July 2024, which provided interim guidelines for recovery where appeals were affected due to the non-constitution of GST Appellate Tribunals. Accepting the petitioner’s submission, the Court observed that no further adjudication was necessary.
The High Court directed that if the petitioner filed an undertaking with the jurisdictional officer to prefer an appeal before the Tribunal once constituted and deposited the statutory pre-deposit under Section 112(8) within 30 days, recovery of the balance demand would remain stayed under Section 112(9). Failure to comply would render the order ineffective.
FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT
1. Heard.
2. As learned counsel appearing for the respondents accepts notice on behalf of the respondents, no formal steps are required.
3. With the consent of learned counsel for the parties, the matter is heard finally.
4. This Petition has been filed against the order dated 15.04.2025 passed by respondent No.2 under Section 107(11) of the Chhattisgarh Goods & Services Tax Act, 2017 (for short, “CGST Act”) whereby, the Appeal preferred by the petitioner was summarily dismissed on the ground of delay.
5. At the outset learned counsel for the petitioner submits that on 07.08.2024, respondent No.3/adjudicating authority has passed an ex-parte order and imposed punishment/penalty and determined the tax and interest of Rs.8,56,562/- against which, the petitioner has filed an application for the rectification on 09.08.2024 under Section 161 of the CGST Act and the same has been dismissed on 11.12.2024, thereafter, an Appeal has been preferred on 17.03.2025. As the Appeal was preferred beyond the period of limitation prescribed under Section 107(4) of the CGST Act, the learned Appellate Authority has not calculated the period of limitation from the date of rejection of the application of the rectification which was passed on 11.12.2024. He would further submit that the similar issue came up before the Madurai Bench of the Madras High Court in M/s. SPK and Co. vs. The State Tax Officer, W.P.(MD) Nos. 27787/2024 and 27788/2024 (order dated 22.11.2014), wherein it has been held that the period of limitation for challenging the assessment order shall start ticking from the date of the rejection of the rectification application, so the summarily rejection of the Appeal without entering upon the merit of the case of the petitioner is bad in law. Lastly, he submits that this Petition may be disposed of in light of the guidelines issued by the Central Board of Indirect Taxes and Customs in Circular No.224/18/2024-GST dated 11.07.2024, and that the limitation period has been extended until the Appellate Tribunal comes into operation, subject to the fulfillment of certain conditions stipulated in the aforesaid guidelines.
6. Learned counsel for the State would not oppose the aforesaid prayer.
7. Having regard to the submissions made by learned counsel for the parties and particularly considering that there are explicit guidelines for recovery of outstanding dues in cases wherein, first appeal has been disposed of till the Appellate Tribunal comes into operation, this Court is of the considered opinion that nothing remains for adjudication in this Writ Petition.
8. However, liberty is reserved in favour of the petitioner to comply with the necessary conditions of Circular No.224/18/2024-GST of the Central Board of Indirect Taxes and Customs dated 11.07.2024 by filing an undertaking/declaration with the jurisdictional officer that he would file an Appeal against the order under challenge before the Appellate Tribunal as and when it comes into operation within the time limit mentioned in Section 112 of the CGST Act and shall also pay pre-deposit as per sub-section (8) of Section 112 of CGST Act within a period of 30 days from the date of receipt of copy of this order. It is ordered that as per the said circular, if the petitioner files such undertaking with regard to pre-statutory deposit, the recovery of the remaining amount shall remain stayed as per sub-section (9) of Section 112 of the CGST Act.
9. It is made clear that if the said amount is not deposited within the aforementioned period, this order shall lose its efficacy.
10.With the aforesaid direction/observation, the instant Writ Petition stands disposed of.
