In WPT No. 285 of 2022 – CHHA HC – Chhattisgarh High Court holds Farhat Construction’s appeal outside extended limitation period, dismisses writ petition in GST Matter
Justice Parth Prateem Sahu [02-05-2023]

Read Order: Farhat Construction v State of Chhattisgarh and Ors.

Chahat Varma

New Delhi, June 1, 2023: The High Court of Chhattisgarh has dismissed the writ petition filed by Farhat Construction (appellant) on the grounds that the appeal fell outside the extended period of limitation.

Facts of the case were that the petitioner, a proprietorship firm registered under the Goods and Service Tax, had been assessed by the respondents for a short payment of GST amounting to Rs.16,04,845 (CGST Rs.8,02,423 and SGST Rs.8,02,423). The Adjudicating Authority issued an order regarding the tax difference of Rs. 33,66,672 and issued a demand under DRC-07. The petitioner appealed this order under Section 107(1) of the Goods and Services Tax Act, 2017, but the appeal was dismissed on 10.11.2022. Consequently, the petitioner filed the present writ petition.

The petitioner contended that the learned Appellate Authority while dismissing the appeal as barred by limitation had observed that the appeal was barred by 536 days, which was per-se wrong in view of the decision of the Supreme Court in In Re: Cognizance for Extension of Limitation [LQ/SC/2022/33].

The bench of Justice Parth Prateem Sahu observed that the Supreme Court considering the outbreak of Covid-19 pandemic had excluded the period during Covid-19 pandemic period with which the entire country was suffering i.e., from 15.03.2020 to 28.02.2022. In the order, the Supreme Court had observed that all persons shall have a limitation period of 90 days from 01.03.2022.

The bench held that even if the submission of petitioner was accepted that the First Appellate Authority erred in observing in the impugned order that there was delay of 536 days in the light of the order of the Supreme Court to be wrong, then also the period of limitation of 90 days, which was extended by the Supreme Court started from 01.03.2022 and came to an end on 30-31st of May, 2022. However, the petitioner had preferred the appeal on 07.10.2022.

The bench dismissed the petitioner's argument to remit the matter back to the First Appellate Authority, stating that it was not sustainable. The bench reasoned that even after excluding the period between 15.03.2020 to 28.02.2022, as ordered by the Supreme Court, the filing of the appeal still exceeded the extended period of limitation.