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2023 (5) TMI 171 - HC - GST


Issues involved:
The judgment involves a writ petition challenging an order passed by the appellate authority rejecting an appeal against a tax demand on the ground of limitation. The main issue is whether the appellant should be granted another opportunity to produce proof of being a registered government contractor to establish the tax liability.

Summary:

Issue 1 - Limitation of Appeal:
The writ petitioner appealed against an order rejecting their appeal due to a delay of 297 days in filing the appeal, which was later reduced to a delay of 114 days. The appellate authority dismissed the appeal citing the statutory limitation under Section 107(1) of the GST Act, 2017, which restricts the condonation of delay beyond three months. The High Court upheld the dismissal of the appeal due to the delay exceeding the statutory limit.

Issue 2 - Tax Liability of the Assessee:
The assessee initially paid tax at a rate of 12% as a government contractor, but the tax demand was calculated at 18% as the assessee failed to provide documentation proving their registration as a government contractor. The court acknowledged that the assessee had paid 10% of the disputed tax as a pre-deposit and decided to grant the assessee another opportunity to submit proof of being a registered government contractor.

Resolution:
The High Court set aside the orders of the appellate authority and remanded the matter back to the original authority, the Assistant Commissioner, SGST, Siliguri Charge, with a condition. The assessee was directed to pay an additional sum of Rs.1 lakh, and upon payment, the assessing officer would review the documents provided by the assessee to determine the tax liability at 12%. If the condition was not met within two weeks, the appeal would stand dismissed. Compliance with the condition would result in the lifting of the bank account attachment.

This judgment emphasizes the importance of adhering to statutory limitations in filing appeals and provides an opportunity for the assessee to rectify the lack of documentation regarding their tax liability as a registered government contractor.

 

 

 

 

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