Sri Ram Ply Product vs Additional Commissioner Grade-2, Appeal, State Tax Sitapur

Allahabad High Court’s Landmark Judgement Justice takes time, but how much exactly? 

The court clears the air, clarifying ‘four months’ doesn’t always mean ‘120 days’. 

The appeal process shouldn’t be a race against time, but a deep dive into the merits of the case! 

• Case pertains to Section 107 of GST Laws, regarding delay in filing appeal. 

• The appellate authority dismissed the appeal as it was filed beyond the stipulated period of four months. 

• The court clarified that the period is four months, not necessarily 120 days. 

• The appeal in this case was filed on the 121st day, which still fell within the four-month window. 

• The court highlighted that the appellate authority should have focused on the merits of the appeal rather than the filing timeline. 

• The appeal has been reinstated, with the appellate authority directed to decide based on its merits. 

• The writ petition has been allowed, reversing the previous dismissal.

1. Heard Mr. Suyash Agarwal along with Mr. Alok Singh, Advocates for the petitioner, as well as Mr. Sanjay Shareen, learned Additional Chief Standing Counsel, for respondents-State Authorities.

2. This petition under Article 226 of the Constitution of India has been filed, seeking setting-aside of the order dated 27.02.2023 passed by the Additional Commissioner Grade-2 (Appeal) Sitapur in Appeal No.112 of 2022 for the year 2021-22 (tax period October and November 2021) (Annexure-7) .

3. Vide the impugned order the appeal instituted by the petitioner was dismissed on the ground that it was beyond maximum period, as prescribed under the statute i.e. four months. The prescribed authority had confirmed the demand of Rs. 49.74 Lakhs vide order dated 07.06.2022. The appellate authority has computed four months as each month would be of 30 days.

4. Section 107 of the Uttar Pradesh Goods and Services Tax Act, 2017 (for short “Act, 2017”) provides that an appeal, against any decision or order passed under this Act or the State Goods and Services Tax Act by the adjudicating authority, may be filed before appellate authority within the prescribed period of three months from the date on which the said order is communicated to the person concerned. Sub-Section (4) of Section 107 of the Act, 2017 provides that the appellate authority may, if it is satisfied that the appeal was prevented by sufficient cause from presenting it within the period of three months, may allow it to be presented within a further period of one month.

5. Bare reading of the provisions of Section 107 of the Act, 2017 reflects that it is not 120 days, but it is four months and, therefore, it would depend upon the date on which date the adjudicating authority passes the order. The four months may be of 121 days or 122 days, as the case may be. In the present case, in four months, around 121 days come, and the appeal was filed on 121st day. The appellate authority should have entered into the merit of the application whether it disclosed sufficient cause for not filing the appeal within the period of three months instead of entering into merit of the application to find out whether the appellant, petitioner herein had sufficient cause which preventing him from presenting the appeal within a period of three months, the appeal has been summarily dismissed only on the ground that it was beyond 120 days, and not within 120 days.

6. Mr. Sanjay Shareen, learned Additional Chief Standing Counsel, does not dispute either legal position or the factual position.

7. In view thereof, the appeal is restored to its original number, and the appellate Authority is directed to proceed with the appeal, and decide the same on merit, expeditiously, in accordance with law.

8. The petition is allowed, and the impugned order is quashed.

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Sri Ram Ply Product

For Reference Visit:
Allahabad High Court

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GST Case Law