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2023 (5) TMI 171 - HC - GSTRefusal to grant any interim order while entertaining the writ petition - short payment of tax - rate of tac - 12% or 18% - assessee did not produce any document before the assessing officer to establish that he was a registered government contractor - delay of 297 days in filing the appeal - HELD THAT - There is a delay of 297 days in filing the appeal. After extending the benefit of the order passed by the Hon ble Supreme Court, yet there was a delay of 114 days. Obviously, the appellate authority is not empowered to condone the delay beyond a period of three months as there is a statutory embargo in terms of Section 107(1) of the GST Act, 2017. Therefore, the appeal was rightly dismissed. In this situation, it has to be seen as to what remedy the assessee would be entitled to. It is noticed that the assessee had already paid tax at the rate of 12% on the ground that he is a government contractor, but the demand has been raised by computing the tax as 18% for the reason that the assessee did not produce any document before the assessing officer to establish that he was a registered government contractor - the assessee having paid tax at the rate of 12% at the time of filing returns and also paid the 10% of the disputed tax as pre-deposit at the time of filing the appeal, we are of the view that one more opportunity can be granted to the assessee to produce proof to show that he is a registered government contractor. However, this opportunity shall be subject to condition. The appeal and the writ petition are disposed of by setting aside the orders passed by the appellate authority and remanding the matter back to the original authority, namely, the Assistant Commissioner, SGST, Siliguri Charge, Siliguri with a condition that the appellant shall pay a further sum of Rs.1 lakh and upon such payment, the said assessing officer shall consider the documents which the assessee may produce and examine as to whether the assessee was right in computing the tax at 12% and after considering all the documents and affording an opportunity of personal hearing of the assessee, the assessing officer is directed to pass fresh orders on merits and in accordance with law.
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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