HC directs Department to accept and dispose the appeal filed beyond condonable period due to Accountant illness

The Hon’ble Madras High Court in the case of Chandrasekaran Anand v. Deputy Commissioner (ST) [Writ Petition No. 13487 of 2024 dated June 11, 2024], has allowed the writ petition filed against the order dismissing the appeal filed beyond the condonable period due to Accountant illness and thereby, directed the Appellant to consider the appeal filed on merits without going into the question of limitation. 

Facts:

Mr. Chandrasekaran Anand (“the Petitioner”), Proprietor, filed a writ petition against appellate order dated March 21, 2024 (“the Impugned Order”), wherein the Appeal filed by the Petitioner was rejected by the Revenue Department (“the Respondent”) on the grounds of limitation.. as the same was filed beyond the condonable period as it had ended on February 16, 2024. The Petitioner contended that delay was due to Petitioner’s accountant, being hospitalized during the said time period. However, the Respondent did not take into consideration the aforesaid fact and dismissed the appeal filed on the ground of limitation.

Held:

The Hon’ble Madras High Court in Writ Petition No. 13487 of 2024 considering the merits of the case allowed the appeal filed and directed the Respondent to consider the appeal filed on merits without going into the question of limitation. 

Our Comments:

The Hon’ble Calcutta High Court in the case of Jayanta Ghosh and Ors. v. State of W.B. [W.P.A No. 230 of 2024 dated March 05, 2024] and Murtaza B Kaukawala v.  State Of W.B. And Ors. [MAT/1361/2023 dated October 18, 2023], by invoking Section 5 of the Limitation Act, allowed the appeal filed beyond the limitation period interlalia holding that an Appellate Authority cannot dismiss the appeal on the ground of limitation without granting any opportunity of hearing. The delay can be condoned if the principles of natural justice has been violated by not providing the opportunity of hearing to the Appellant and the period prescribed for filing of appeal is not final.

However, The Hon’ble Kerala High Court in M/s Penuel Nexus Pvt Ltd. v. The Additional Commissioner (Appeals), Cochin [WP(C) No. 15574 of 2023 dated June 13, 2023] held that the Additional Commissioner (“the Respondent”) is right in rejecting the time-barred appeal as section 107 of the CGST Act has an inbuilt mechanism and has impliedly excluded the application of the Limitation Act, 1963.

Further, The Hon’ble Allahabad High Court in the case of M/s. Yadav Steels v. Additional Commissioner and Anr. [Writ Tax No. 975 of 2023 dated February 15, 2024], dismissed the writ petition, thereby holding that, Section 5 of the Limitation Act would not be applicable for appeal filed under Section 107 of the UPGST Act.

For more information watch: No benefit of Limitation Act for filling appeal under GST Law || CA (Adv) Bimal Jain

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