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.
