Adinath Rice Mill Granted Relief as Court Affirms Applicability of Extended Deadline Notification
In a significant judgment dated August 3, 2026, the Gujarat High Court, comprising Justices A.S. Supehia and Vaibhavi D. Nanavati, has quashed the order of an appellate authority that rejected an appeal by Adinath Rice Mill on the grounds of delay. The court has remanded the case for a fresh decision on merits, emphasizing the applicability of a crucial notification extending the time for filing appeals under the Goods and Services Tax (GST) framework.
The petitioner, Adinath Rice Mill, had filed an appeal against an original order dated January 27, 2023, citing belated filing of returns rather than tax evasion. Despite filing the appeal on December 28, 2023, the appellate authority dismissed it due to a delay beyond the prescribed 120-day limit under Section 107 of the GST Act. However, the crux of the case lay in the GST Council’s Notification No. 53/2023 issued on November 2, 2023, which extended the deadline for filing such appeals to January 31, 2024.
The court analyzed the intent behind the notification, which was to provide relief to taxpayers whose appeals were either pending or previously rejected due to the expiry of the limitation period. The judges underscored that the notification aimed to benefit both taxpayers and the revenue department by facilitating the collection of taxes, interest, and penalties.
Despite the respondent's contention that the notification did not apply as Adinath's appeal was not previously rejected for delay, the court concluded that the notification’s provisions were indeed applicable. The judgment stressed that the appellate authority should have considered the notification when deciding the appeal, as it was filed before the extended cut-off date and met the conditions specified therein.
The judgment draws attention to the court's interpretation that taxpayers who filed appeals within the extended timeline should not be disadvantaged compared to those whose appeals were earlier rejected for delay. The court's decision aligns with the GST Council's objective to allow appeals under the extended timeframe, thereby promoting fairness and ensuring due process.
In conclusion, the Gujarat High Court’s ruling in favor of Adinath Rice Mill signifies a pivotal moment in the interpretation of GST appeal procedures, reinforcing the necessity for appellate authorities to adhere to government notifications intended to ease procedural constraints on taxpayers.
Bottom Line :
Goods and Services Tax (GST) - Appeal rejected on the ground of delay - Applicability of Notification dated 02.11.2023 extending time for filing appeals - Taxpayer who filed appeal before the cut-off date of 31.01.2024 cannot be denied benefit of the Notification, even if their appeal was not earlier rejected on the ground of delay.
Statutory provision(s): Goods and Services Tax Act, 2017 Sections 107, 73, 74, Notification No. 53/2023-Central Tax dated 02.11.2023
Adinath Rice Mill v. Union of India, (Gujarat)(DB) : Law Finder Doc id # 2957084
