The Bombay High Court has recently reiterated to CBIC to follow the three month limitation period as mentioned in the Circular No. 132/2/2020, dated 18th March 2020, to file appeals against orders of the lower appellate authority.
A batch of Writ Petitions were filed under Article 226 of the Constitution of India on the ground that the Appellate Tribunal is not yet constituted. Since various such Petitions are being filed in this Court and taking note of the large pendency of such cases, the Bombay High Court had directed the Respondents to file a reply affidavit as to the position brought about by non-constitution of the Appellate Tribunal.
The Chairman of the Central Board of Indirect Taxes and Customs (CBIC) filed an affidavit, inter alia, stating that, “I humbly say and submit that no hardship is caused to the taxpayers/trade due to non-formation of GSTAT as period of limitation for filing appeal to the Tribunal is extended vide Central Goods & Service Tax (ninth Removal of Difficulties) Order, 2019 dated 03.12.2019 (Annexure II), so that the appeal can be filed within three months after constitution of Tribunal”
Anil Singh, Additional Solicitor General placed the aforesaid Circular No. 132/2/2020-GST, which had stated that, “ It has been provided through the said Order that the appeal to tribunal can be made within three months (six months in case of appeals by the Government) from the date of communication of order or date on which the President or the State President, as the case may be, of the Appellate Tribunal enters office, whichever is later.”
The Division Bench of Justices Abhay Ahuja and Nitin Jamdar observed, “the appeal to the Appellate Tribunal can be filed within three months (six months in the case of Appeals by the Government) from the date of the communication of the order or date on which the President or State President, as the case may be, of the Appellate Tribunal enters office, whichever is later.”
The Bombay High Court thus directed the CBIC, Revenue and State that, “The period of filing the Appeal will stand extended as indicated in Clause 4.2 of the Circular dated 18 March 2020.
The impugned order will not be given effect until two weeks after the period prescribed for filing an appeal as under Clause 4.2 of the Circular dated 18 March 2020 is over.”
The Court further directed that, “the Respondent-Board issues instructions to incorporate Clause 4.2 of the Circular dated 18 March 2020 in each order which is appealable to the Appellate Tribunal constituted under Section 109 of the Act. This would guide the aggrieved parties as to the future course of conduct and reduce needless litigation in the form of filing writ petitions such as the present ones.”
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