Case title:
M/s Micro Zone Vs Union of India
Date of Order:
09-11-2023
Bench:
Chief Justice K. Vinod Chandran, Justice Rajiv Roy
Parties:
Petitioners- M/s Micro Zone
Respondents- Union of India
SUBJECT
The Bihar Goods and Services Taxes Act, 2017 (BGST Act) is a comprehensive legislation enacted by the Government of Bihar to regulate the Goods and Services Tax (GST) in the state. The BGST Act aims to simplify the taxation system and promote economic efficiency by subsuming various taxes and levies into a single tax. The primary objective of the BGST Act is to implement the Goods and Services Tax regime in the state of Bihar. By replacing the existing indirect taxes such as VAT, CST, and entry tax, the BGST Act aims to streamline the tax administration and reduce compliance costs for businesses.
IMPORTANT PROVISIONS
The Bihar Goods and Services Taxes Act, 2017
- Section 107
- Section 73
- Section 74
OVERVIEW
- The present writ petition challenges an order in an appeal lodged under the Bihar Goods and Services Taxes Act, 2017, referred to as the BGST Act. The appeal filed was rejected on the grounds of delay under Section 107 of the Act.
- According to Section 107 of the BGST Act, there is a provision of three months to file an appeal, and an additional one month may be granted for filing the appeal with a satisfactory explanation for the delay.
- However, the dismissal has been set aside by the High Court and the appeal has been restored, with the condition that the requirements outlined in Notification No. 53 of 2023 issued by the Central Board of Indirect Taxes and Customs are met.
- Notification No. 53 extends the deadline for filing an appeal against an order issued by the Proper Officer on or before 31.03.2023 under Sections 73 and 74 of the BGST Act. This effectively extends the appeal filing period beyond the one-month timeframe specified in Section 107(4) of the BGST Act, provided that the special procedure prescribed in the aforementioned Notification is followed.
ISSUE RAISED
- Whether the writ petition challenging the dismissal of an appeal on the ground of delay under the Bihar Goods and Services Taxes Act, 2017 (BGST Act) is maintainable?
JUDGEMENT ANALYSIS
- The Patna High Court ruled in favor of the petitioner, setting aside the dismissal order.
- The court ordered the assessee to fulfill the conditions outlined in paragraph no. 3 of the Notification by the specified deadline of 31.01.2024. If the conditions are satisfied, the appeal will be evaluated based on its merits. However, if the conditions are not met, the appeal will be rejected.
- The court clarified that whenever writ petitions are rejected by reason of delay, being beyond that prescribed under Section 107(4) of the BGST Act; the assessee would be entitled to invoke the said remedy against the orders and avail of the benefit of Notification.
- The court further directed The Commissioner, State Taxes, Government of Bihar shall issue necessary instructions to the officers authorized under the Act to conduct assessments and review appeals regarding the decisions made by this Court. These appeals can be reinstated if the conditions stated in this Notification are strictly followed, even if the writ petitions filed against the dismissal of delayed appeals have been rejected by the Court solely due to the delay.
CONCLUSION
The judgment by the Patna High Court in this case demonstrates a thoughtful approach, taking into account the provisions of both the BGST Act and the recent Central Tax notification. It highlights the significance of adhering to legal timelines while acknowledging the possibilities offered by relevant notifications to restore dismissed appeals under specific circumstances. The ruling has broader implications for instances where petitions challenging delayed appeals have been dismissed solely due to the delay. The court explicitly stated that individuals in such cases would have the right to utilize the remedy outlined in Notification No. 53 of 2023, as long as they meet the specified requirements.
