Gannon Dunkerley And Co Limited Vs State of Chhattisgarh (Chhattisgarh High Court)
Conclusion: Although in the tax statute the limitation was interpreted in strict manner but when the legislature itself had prescribed extended period of time after period of limitation then the Authority ought to have considered such aspect and examined the cause shown by the appellant. The matter was remitted to the Appellate Authority to pass fresh and speaking order after providing sufficient opportunity of hearing to assessee in terms of Section 107 (12).
Held: Assessee-company had filed annual return for FY 2018–19 declaring turnover of ₹60.97 Cr. and paid GST of ₹8.46 Cr. Proper Officer issued show cause notice u/s 73 proposing demand of ₹18.77 Cr. (incl. interest & penalty), but did not specify date, time or venue of hearing. Despite assessee’s reply (09.01.2024), ex parte demand order u/s 73 was passed on 29.04.2024 imposing liability of ₹72.28 lakh. Assessee filed appeal u/s 107 with 26-day delay, supported by condonation application. Appellate Authority dismissed the appeal summarily, citing “delay in submission of appeal,” without reasons or hearing. It was held that the appeal was barred by only 26 days. Assessee-company had duly filed the application for condonation of delay along with appeal before the Appellate Authority and also mentioned sufficient cause for such delay. It was also not disputed that the period of delay had not exceeded the period which was mentioned in Section 107 (4) and thereby the same was condonable. Moreover, the Authorised Officer had also sent its proposal to the management and sought approval for challenging the same. The Court reached to the conclusion that there was no intention on the part of the assessee to cause delay in filing the appeal and the impugned order had been passed summarily which required to be considered on merits. Hence, the delay of 26 days in filing the appeal was condoned. The matter was remitted to the Appellate Authority to pass fresh and speaking order after providing sufficient opportunity of hearing to assessee in terms of Section 107 (12).
