Case Law Details
Trans Car India Private Limited Vs Additional Commissioner (Madras High Court)
Introduction: The Madras High Court, in the case of Trans Car India Private Limited vs. Additional Commissioner, addressed the imposition of penalties under the GST Act. The appellant challenged Order-in-Original No.25 of 2023 (DGGI) dated 31.05.2023, asserting that the first respondent acted arbitrarily without jurisdiction. The learned Judge, in W.P. No. 27678 of 2023, disposed of the writ petition with specific observations and directions.
Detailed Analysis: The appellant, dissatisfied with the order of the learned Judge, filed a writ appeal against the decision. The crux of the matter lies in the imposition of penalties and interest under the Central Goods and Services Tax (CGST) Act, 2017, State Goods and Services Tax (SGST) Act, 2017, and Integrated Goods and Services Tax (IGST) Act, 2017.
The learned Judge, in the order dated 22.09.2023, granted the appellant the liberty to challenge the impugned Order-in-Original within thirty days from the date of receipt of the order. Additionally, the appellant was directed to deposit 10% of Rs.14,88,370/- towards pre-deposit along with the proposed appeal.
During the appeal proceedings, the appellant’s counsel sought an extension of the time limit granted by the learned Judge for filing an appeal and the pre-deposit amount. The court, considering the submission, extended the time limit by a further period of eight weeks, starting from the current date. The appellant is instructed to file the appeal before the first respondent along with the required pre-deposit within this extended time frame. The first respondent is directed to consider the appeal without raising any limitation issues and pass an appropriate order on merits and in accordance with the law, providing an expeditious opportunity for the appellant to present their case.
Conclusion: The Madras High Court’s decision in the Trans Car India case highlights the importance of procedural aspects in challenging GST penalties. The extension of the time limit for filing an appeal and the specific directions regarding pre-deposit provide the appellant with an opportunity to present their case more comprehensively. This case serves as a precedent for addressing time constraints in GST appeals, emphasizing a fair and just process for resolving disputes.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
This writ appeal has been filed against the order passed by the learned Judge in W. P. No. 27678 of 2023 on 22.09.2023.
2. The appellant herein is the petitioner in the aforesaid writ petition. According to them, the first respondent passed the Order-in-Original No.25 of 2023 (DGGI) dated 31.05.2023 without considering the submissions raised by the appellant, after having virtual hearing. The first respondent acted arbitrarily and passed the said order dated 31.05.2023 imposing penalty and interest under the provisions of Central Goods and Services Tax (CGST) Act, 2017, State Goods and Services Tax (SGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017, without any jurisdiction. Challenging the same, the appellant filed a writ petition in W.P.No.27678 of 2016. By order dated 22.09.2023, the learned Judge disposed of the said writ petition, with the following observations and directions:
“4.Therefore, Court is inclined to dispose this writ petition by giving liberty to the petitioner to challenge the impugned Order-in-Original No.25/2023 (DGGI) dated 31.05.2023 passed by the first respondent, within a period of thirty days from the date of receipt of a copy of this order. The petitioner shall deposit 10% of Rs.14,88,370/- towards pre-deposit along with the proposed appeal.
5. This writ petition stands disposed of with the above liberty “
Aggrieved by the aforesaid order of the learned Judge, the present appeal has been preferred by the appellant herein.
3. Today, when the matter was taken up for consideration, the learned counsel for the appellant, after arguing some time, submitted that it would suffice, if the time limit granted by the learned Judge to file an appeal before the first respondent and pre-deposit of 10% of 14,88,370/- along with the appeal, is extended by this court.
4. In view of the above, the time limit fixed by the learned Judge for filing appeal with required pre-deposit, is extended by further period of eight weeks, which will take effect from today. Accordingly, the appellant shall file an appeal before the first respondent along with pre-deposit of 10% of Rs.14,88,370/-, as directed by the learned Judge in the impugned order passed in the writ petition, within the time extended today. On filing of such appeal, the first respondent shall consider the same, without raising any issue relating to limitation, if any and pass appropriate order, on merits and in accordance with law, after affording an opportunity of hearing to the appellant, as expeditiously as possible.
5. With the aforesaid directions, this writ appeal stands disposed of. No costs. Consequently, connected miscellaneous petitions are closed. The Registry is directed to return the original copy of the Order-in-Original No.25 of 2023 (DGGI) dated 31.05.2023, if any, to the appellant, after substituting a copy of the same.
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