Introduction: The GST landscape witnessed a significant development with the Central Government’s introduction of an amnesty scheme through notification No.53/2023 Central Tax on November 2, 2023. This scheme aimed to provide relief for filing appeals against demand orders where the permissible time frame had lapsed. However, a critical question arises—does this amnesty scheme extend to adjudication orders passed on or after April 1, 2023?
Detailed Analysis
The Central Government, vide notification No.53/2023 Central Tax Dated 2.11.2023, has declared an amnesty Scheme for filing of appeals against demand orders in the cases where appeal could not be filed within the allowable time period. Accordingly taxable persons who could not file an appeal against the order passed by the proper officer on or before the 31st day of March, 2023 under section 73 or 74 of the said Act, within the time period specified in subsection (1) of section 107 read with sub-section (4) of section 107 of the said Act, and the taxable persons whose appeal against the said order was rejected solely on the grounds that the said appeal was not filed within the time period specified in section 107 are eligible to avail benefit of amnesty scheme and thereby such appeal are admitted subject payment of prescribed pre-deposit.
In other words, benefit of said amnesty scheme is admissible to the taxable persons in whose cases adjudication orders are passed on or before 31-03-2023 and no benefit is admissible to the taxable persons in whose cases adjudication orders are passed on or after 1-4-2023.
However, in the case of M/s Prince Sanitation (Civil Writ Jurisdiction Case No.17202 of 2023 Dated 7-12-2023) High Court of Patna has allowed benefit of said amnesty, where adjudication order was passed on 27-04-2023. Relevant observations are as under.
Para 4. The difficulty insofar as its application to the petitioner’s case is the date on which the proper officer, being the Assessing Officer, having passed the order which was challenged in appeal, on 27.04.2023. The notification which was brought out on 02.11.2023 only permits appeals to be filed from orders passed by the proper officer on or before 31.03.2023, in cases in which it was not instituted in time or within the time permitted for a delayed appeal, and in cases where such delayed appeals beyond the stipulation in 107(4) has been rejected. The petitioner would not squarely fall under the notification.
Para 5. We do not see any rationale for the date fixed of 31.03.2023, as a cut off date. We notice that the notification itself was brought out on 02.11.2023 and in such circumstances any order passed in at least three months before that date; the time provided for filing an appeal, ought to have been considered for such beneficial treatment.
Para 6. In the above circumstances, we are of the opinion that the petitioner also can be allowed to comply with the conditions in Notification No. 53 of 2023 upon which the order passed in appeal would stand set aside and a fresh consideration will be made by the first Appellate Authority. If the petitioner fails to fulfill the criteria as stated in the notification, then the impugned order will operate.
Conclusion: While the general understanding is that the GST amnesty scheme does not cover adjudication orders post-April 1, 2023, the case of M/s Prince Sanitation introduces an element of debate. This exception emphasizes the need for careful consideration of the notification’s conditions and potential legal interpretations. As the scenario unfolds, staying informed about any amendments or judicial decisions becomes crucial for businesses navigating the complexities of GST compliance.
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Motiram Kanadje | Retired Joint Commissioner of State Tax
Author can be reached via email Email- momakanadje@gmail.com
Disclaimer: Nothing contained in this document is to be construed as legal opinion or view of author whatsoever and the content is to be used strictly for informational and educational purposes. While due care has been taken in preparing this article, certain mistakes and omissions may creep in. The author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any action taken in reliance thereon.
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