The Hon’ble High Court of Allahabad vide its order dated 21.04.2023 in the matter of Shri Ram Ply Product Thru. Its Partner Shri Arun Kumar Jindal Vs. Addl. Commissioner Grade 2 Appeal State Tax Sitapur and 2 Others in Writ Tax No. – 96 of 2023, restored the appeal of the petitioner filed on the 121^st day, which was dismissed for delay in filing in terms of Section 107 of the UP GST Act.  The Appellate Authority was directed to proceed with the appeal and decide the same on merits.

The Petitioner filed the writ petition before the Hon’ble High Court praying for setting aside the order dated 27.02.2023 passed by the Additional Commissioner Grade – 2(Appeal) Sitapur in Appeal no. 112 of 2022 for the year 2021-22 (tax period October and November 2021).

That vide the impugned order the appeal filed by the petitioner was dismissed on the ground that it was beyond the maximum period prescribed under the statute/Act i.e., four months.  The prescribed authority had confirmed the demand of Rs. 49.74 Lakhs vide order dated 07.06.2022. The appellate authority has computed four months as each month would be of 30 days.

Held: –

• The Hon’ble Court after considering the submissions made and facts of the case, took note of the Section 107 of the UP GST Act, 2017, which states that that an appeal, against any decision or order passed under this Act or the State Goods and Services Tax Act by the adjudicating authority, may be filed before appellate authority within the prescribed period of three months from the date on which the said order is communicated to the person concerned. Further, Sub-Section (4) of Section 107 of the Act, 2017 provides that the appellate authority may, if it is satisfied that the appeal was prevented by sufficient cause from presenting it within the period of three months, may allow it to be presented within a further period of one month.
• The Hon’ble Court on perusal of Section 107 found that from bare reading of the provisions of Section 107 of the Act, 2017 shows that it is not 120 days, but it is four months and, therefore, it would depend upon the date on which date the adjudicating authority passes the order.
• That four months may be of 121 or 122 days, and in the present matter four months period comes around 121 days, and the appeal was filed on 121^st
• It was found that the appellate authority should have entered into the merit of the application whether it disclosed sufficient cause for not filing the appeal within the period of three months, however, the appeal was summarily dismissed on the ground that it was beyond 120 days and not within 120 days.

The Hon’ble Court with the above findings, allowed the petition and restored the appeal to its original number. Further, quashing the impugned order, the Appellate Authority was also directed to proceed with the appeal and decide the same on merits in accordance with law.