Order Date – 07 February 2025

Parties: M/S ADDICHEM SPECIALLITY LLP  Vs SPECIAL COMMISSIONER I, DEPARTMENT OF TRADE AND TAXES AND ANR and others 

Facts –

• The Petitioners, M/s Addichem Specillity LLP and others,  were assessed by the respective adjudicating authorities which resulted in certain demands being raised against them and in some instances, their GST registrations being cancelled.
• Aggrieved by the cancellation of their GST registrations and the demands imposed, the petitioners filed statutory appeals before the Appellate Authority under Section 107 of the CGST. However, those appeals were not entertained and were dismissed due to delay in filing. 
• It was submitted that delay in filing appeals due to various reasons such as COVID-19, lack of proper notice, errors in SCNs, and non-consideration of their responses by the authorities.

Issue –

• Whether the Appellate Authority condone delays in filing appeals beyond the additional one-month period prescribed under Section 107(4) of the CGST Act, 2017?

Order –

• The Divisional Bench of Hon’ble High Court observed that Sub-Section (4) of Section 107 of the CGST Act provides discretion to the Appellate Authority to entertain an appeal if it is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the prescribed three-month period, provided the appeal is presented within an additional period of one month.
• It is well settled that once a statute prescribes a specific period of limitation, the Appellate Authority does not inherently hold any power to condone the delay in filing the appeal by invoking the provisions of Section 517 or 2918 of the Limitation Act, 1963.
• Once it is found that the legislation incorporates a provision which creates a special period of limitation and proscribes the same being entertained after a terminal date, the general provisions of the Limitation Act would cease to apply.
• Thus it is evident that each of the appeals was filed beyond the prescribed period of limitation provided by Sections 107 (1) and 107 (4) of the CGST Act, the aforesaid writ petitions lack merit and are accordingly dismissed.