Imposition of Penalty under GST Act: Madras HC extends Time Limit fixed for filing Appeal with required Pre-Deposit [Read Order]

The Madras High Court extended the time limit fixed for filing appeal with required pre-deposit, in the matter of imposition of penalty under the Goods and Service Tax (GST Act), 2017. According to the petitioner, the first respondent passed the Order-in-Original No.25 of 2023 (DGGI) dated 31.05.2023 without considering the submissions raised by the appellant, after having virtual hearing.

The first respondent acted arbitrarily and passed the said order dated 31.05.2023 imposing penalty and interest under the provisions of Central Goods and Services Tax (CGST) Act, 2017, State Goods and Services Tax (SGST) Act, 2017 and Integrated Goods and Services Tax (IGST) Act, 2017, without any jurisdiction. Challenging the same, the appellant filed a writ petition.

The Judge disposed of the writ petition by observing that “Therefore, Court is inclined to dispose this writ petition by giving liberty to the petitioner to challenge the impugned Order-in-Original No.25/2023 (DGGI) dated 31.05.2023 passed by the first respondent, within a period of thirty days from the date of receipt of a copy of this order.

The petitioner shall deposit 10% of Rs.14,88,370/- towards pre-deposit along with the proposed appeal.” When the matter was taken up for consideration, the learned counsel for the appellant, after arguing some time, submitted that it would suffice, if the time limit granted by the learned Judge to file an appeal before the first respondent and pre-deposit of 10% of Rs.14,88,370/- along with the appeal, is extended by the court.

A Division Bench comprising of Justices R Mahadevan and Mohammed Shaffiq observed that “The time limit fixed by the learned Judge for filing appeal with required pre-deposit, is extended by further period of eightweeks, which will take effect from today. Accordingly, the appellant shall file an appeal before the first respondent along with pre-deposit of 10% of Rs.14,88,370/-, as directed by the learned Judge in the impugned order passed in the writ petition, within the time extended today.”

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