Orissa HC Sets Aside Order Rejecting GST Appeal for Delayed Filing Considering COVID-19 Restrictions

Jyoti Prasad Sahu & Sons Vs Chief Commissioner (Orissa High Court)

In the recent case of Jyoti Prasad Sahu & Sons Vs Chief Commissioner, the Orissa High Court addressed a significant issue concerning delays in filing GST appeals due to COVID-19 restrictions. The Court’s ruling emphasizes the need for procedural flexibility and fair consideration in light of extraordinary circumstances affecting taxpayers’ ability to adhere to deadlines.

Case Background: Jyoti Prasad Sahu & Sons, the petitioner, challenged the order dated February 26, 2024, passed by the Commissioner (Appeal), GST, Central Excise & Customs, Bhubaneswar. The order rejected the petitioner’s appeal solely on the grounds of limitation, without addressing the merits of the case. The petitioner argued that the delay in filing the appeal was attributable to COVID-19 restrictions, which affected their ability to comply with the procedural deadlines.

COVID-19 Impact on Filing: The petitioner’s delay was attributed to the unprecedented disruptions caused by the COVID-19 pandemic. The restrictions imposed during the pandemic had a significant impact on businesses and their operations, including their ability to meet legal and procedural deadlines. The Revenue’s counsel, Mr. A. Kedia, conceded that the delay was a direct consequence of these restrictions and supported the view that the appellate authority could have condoned the delay.

Court’s Findings: The Orissa High Court examined the petitioner’s case and found that the Commissioner (Appeal) had acted solely on the basis of the delay, without considering the merits of the appeal. The Court observed that:

1. COVID-19 Restrictions: The pandemic created exceptional circumstances that justified a reconsideration of the procedural delay.

2. Remittance for Fresh Consideration: The Court emphasized that the appellate authority should have evaluated the appeal considering the impact of COVID-19 and provided an opportunity for a substantive hearing.

Court’s Decision: The High Court set aside the order dated February 26, 2024, and remanded the case to the Commissioner (Appeal), GST, Central Excise & Customs, Bhubaneswar. The Court directed the authority to reconsider the appeal in light of the Supreme Court’s order dated January 10, 2022, in Suo Motu Writ Petition (C) No. 3 of 2020, which acknowledged the pandemic’s impact on legal proceedings.

Conclusion

The Orissa High Court’s decision in Jyoti Prasad Sahu & Sons Vs Chief Commissioner is a critical reminder of the need for judicial flexibility in exceptional circumstances. By setting aside the rejection of the GST appeal based on delay and remanding the case for fresh consideration, the Court reinforced the principle that procedural delays due to unforeseen events, such as the COVID-19 pandemic, should be considered with due regard to the substantive merits of the case.

FULL TEXT OF THE JUDGMENT/ORDER OF ORISSA HIGH COURT

This matter is taken up by hybrid mode.

2. Heard Mr. C.R. Das, learned counsel appearing for the petitioner and Mr. A. Kedia, learned Junior Standing Counsel appearing for the Revenue.

3. The petitioner has filed this writ petition seeking to quash the order dated 26.02.2024 passed by the Commissioner (Appeal), GST, Central Excise & Customs, Bhubaneswar in rejecting Order-in-Appeal No.08/ST/RKL-GST/2024 on the ground of limitation without going into merits of the case.

4. Mr. A. Kedia, learned Junior Standing Counsel appearing for the Revenue stated that there was delay in filing the appeal in view of COVID-19 restriction and, as such, the appellate authority could have condoned the delay. Therefore, the matter can be remitted to the appellate authority for its readjudication.

5. Considering the contention raised by learned Junior Standing Counsel appearing for the Revenue, this Court sets aside the order dated 26.02.2024 passed by the Commissioner (Appeal), GST, Central Excise & Customs, Bhubaneswar in Order-in-Appeal No.08/ST/RKL-GST/2024 and the matter is remitted to the very same authority to consider the same afresh taking into consideration the order dated 10.01.2022 passed by the apex Court in Suo Motu Writ Petition (C) No.3 of 2020 and pass appropriate order affording opportunity of hearing to all the parties.

6. With the above observation and direction, the writ petition stands disposed of.