Madras HC Condones 4-Day Delay in GST Appeal Filing

Mahesh Metal Industries Vs Deputy Commissioner (ST) (Madras High Court)

In the case of Mahesh Metal Industries vs. Deputy Commissioner (ST), the Madras High Court addressed the issue of a 4-day delay in filing an GST appeal. The petitioner had initially received a tax demand order on December 11, 2023, and subsequently sought rectification on April 5, 2024. However, the tax authorities delayed processing the rectification request, causing the statutory appeal period to lapse, leading to the rejection of the appeal. The petitioner then approached the High Court, seeking to condone the delay and to de-freeze their bank account, which had been frozen due to the tax demand. The court, after reviewing the case, found the delay to be justified and condoned it. The court set aside the rejection order dated April 18, 2024, and directed the tax authorities to accept the appeal and process it expeditiously. Additionally, the court ordered the immediate de-freezing of the petitioner’s bank account, considering that a pre-deposit had already been made. The writ petition was disposed of with these directions. Also Read: GST Appeals: Method of Counting Delay and Appeal Period and Condonation of Delay beyond Appeal Period Under GST

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

This writ petition has been filed challenging the impugned order dated 11.12.2023 passed by the 2^nd respondent and to direct the 1st respondent to accept the Statutory appeal filed and to further direct the respondents to de-freeze the Bank accounts of the petitioner having Account No.332401010038707.

2. Mr. K. Vasanthamala, learned Government Advocate, takes notice on behalf of the respondent. By consent of the parties, the main writ petition is taken up for disposal at the admission stage itself.

3. The learned counsel for the petitioner would submit that the show cause notice dated 12.09.2023 was issued by the respondents and the 2^nd respondent passed an order dated 11.12.2023 demanding the tax liabilities. Thereafter, the petitioner submitted a detailed representation dated 05.04.2024 seeking for rectification of the above order and also to de-freeze the bank account of the petitioner. Since the respondents delayed the rectification process, the limitation for filing the appeal was expired. Hence, there was a delay of 4 days in filing the appeal, due to which the respondents had rejected the appeal filed by the petitioner vide order dated 18.04.2024. Hence, this petition has been filed.

4. On the other hand, the learned Government Advocate appearing for the respondents requests this Court to condone the delay and pass appropriate order to the respondents for disposal of the appeal filed by the petitioner.

5. Heard the learned counsel for the petitioner and the learned Government Advocate for the respondents and also perused the materials available on record.

6. In the present case, it appears that the petitioner has filed the rectification application on 05.04.2024, however, the respondents had delayed in considering the said application, due to which, there was a delay of 4 days in filing the appeal by the petitioner. Therefore, this Court, being satisfied with the genuine reasons assigned by the petitioner, is inclined to condone the delay. Accordingly, this Court passes the following order:-

(i) Accordingly, the rejection order dated 18.04.2024 passed by the 1^st respondent is set aside and the delay of 4 days in filing the appeal before the 1st respondent is condonned.

(ii) The 1^st respondent is directed to take the appeal on record and pass appropriate orders on merits and in accordance with law, after providing an sufficient opportunity to the petitioner, as expeditiously as possible.

(iii) Considering the fact that the petitioner has preferred an appeal against the impugned order and made a pre-deposit of a sum of Rs.76,742/-, this Court is of the opinion that the respondents shall de-freeze the bank account of the petitioner. Accordingly, the respondents are directed to instruct the concerned Bank to de-freeze the bank account of the petitioner, immediately upon the receipt of a copy of this order.

7. With the above directions, this writ petition is disposed of. No costs. Consequently, the connected miscellaneous petitions are also closed.