Rajasthan HC to decide on validity of Notification relating to Amnesty Scheme for filing of Appeals and Section 107(4) of the CGST Act

[CA Bimal Jain]

The Hon’ble Rajasthan High Court heard the case of ABDUS SAMI SALFI VERSUS UNION OF INDIA AND OTHERS - 2024 (2) TMI 352 - RAJASTHAN HIGH COURT wherein the Petitioner has questioned the validity of Notification No. 53/2023 dated November 2, 2023 (“the Notification”) and provisions of Section 107(4) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

The Counsel for the Petitioner contended that the provisions of Section 107(4) of the CGST Act restrict the right of the Appellate Authority to condone the delay in filing of appeal by one month only. Also, the date stated in the Notification i.e. March 31, 2023, which provides for extended period of limitation in cases where the orders have been passed before the aforesaid date, has no rationale, as in several other cases the orders were passed even after March 31, 2023, in those cases also the appeals had already become barred by the limitation.  

The Hon’ble High Court passed the interim order wherein the Hon’ble High Court directed that the recovery of the amount as stated in the demand would be stayed if the Petitioner deposits 12.5 percent of the tax amount in dispute and for the rest of the amount the Petitioner is required to submit solvent security.

The Matter has been listed for further hearing on February 21, 2024.

Relevant Provision:

Section 107(4) of the CGST Act:

“Section 107. Appeals to Appellate Authority

(4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month.”

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