The Patna High Court has clarified how delayed appeals under the Bihar Goods and Services Tax Act, 2017 (BGST Act) can be revived in light of a special Central notification issued on 02 November 2023. In this case, a taxpayer’s first appeal had been rejected as time-barred, because it was filed beyond the statutorily condonable period under Section 107(4) BGST. The Division Bench (Hon’ble the Chief Justice and Hon’ble Mr. Justice Rajiv Roy) set aside that rejection and permitted the appeal to be restored—provided the appellant satisfies the payment conditions and the extended timeline mandated by the Central Board of Indirect Taxes & Customs (CBIC) Notification No. 53/2023–Central Tax.

Simplified Explanation of the Judgment

This writ petition arose from a common problem under GST: a first appellate authority dismissed the taxpayer’s appeal against a demand order on the ground of delay. Under Section 107 of the BGST Act, a litigant has three months to file an appeal, with a further one month that the appellate authority may condone on sufficient cause. If an appeal is lodged beyond that additional one month, neither the appellate authority nor the High Court (in writ jurisdiction) can ordinarily condone the delay. In the present matter, the first appeal was admittedly beyond even the condonable one-month period, so the appellate authority rejected it. The petitioner then approached the High Court under Article 226 of the Constitution.

While the writ was pending, the CBIC issued Notification No. 53/2023–Central Tax, dated 02.11.2023. This notification created a special, time-bound window to file or regularise appeals against orders passed by the “Proper Officer” on or before 31.03.2023 under Sections 73 or 74 of the CGST/BGST Acts. It extended the last date for filing such appeals to 31.01.2024, subject to specified pre-deposit and payment conditions. Crucially, it also deemed already-filed (and pending) appeals to be valid under this notification if they meet the conditions, even where there had been delay beyond Section 107(4).

The High Court carefully noted that, in the ordinary course, courts cannot condone delay beyond what the statute expressly permits. However, the notification carves out a special procedure that temporarily relaxes the strict limitation consequences for a defined class of orders (those under Sections 73/74 passed on or before 31.03.2023). Under this special regime:

• The appeal must be filed in FORM GST APL-01 on or before 31.01.2024.
• The appellant must first pay (a) all admitted dues—tax, interest, fine, fee, penalty—and (b) 12.5% of the disputed tax (capped at ₹25 crore), with at least 20% of that 12.5% being paid from the Electronic Cash Ledger.
• No refund is to be granted merely due to this notification until the appeal is disposed of.
• Appeals only against non-tax demands are not admissible.
• Chapter XIII of the CGST Rules applies mutatis mutandis to appeals under the notification.

Applying the above, the Court set aside the appellate authority’s order rejecting the appeal (Annexure-6) and directed that the appeal be restored to the file—if, and only if—the appellant satisfies the notification’s payment and filing requirements within the stipulated time (i.e., on or before 31.01.2024). The Bench also clarified that where an appeal had been previously rejected solely due to delay beyond Section 107(4), assessees may still invoke the benefit of the notification and seek restoration of their appeals by complying with the stated conditions. The Court further directed the Commissioner, State Taxes, Government of Bihar to issue necessary instructions to field officers and appellate authorities to give effect to this remedial window consistently, including in cases where earlier writ petitions were rejected on limitation grounds.

One practical nuance the Bench highlighted is the “deficient amount” that needs to be paid for maintainability under the notification. Typically, at the time of filing a normal appeal under Section 107, a 10% pre-deposit of disputed tax is required. Under the notification, the total pre-deposit condition is pegged at 12.5%. Therefore, if the appellant had earlier deposited 10% when filing the appeal, only the differential amount (to reach 12.5%), subject to the electronic cash ledger requirement, would need to be remitted to satisfy the new window’s terms. Meeting this financial threshold, along with the hard deadline of 31.01.2024 and other procedural steps, is essential for restoration and merits adjudication.

In sum, the High Court’s order provides much-needed clarity: although statutory limitation is strict under Section 107, the extraordinary CBIC notification has temporarily opened a door for certain GST appeals that were otherwise shut for delay. Taxpayers who qualify under the notification’s scope can revive their appellate remedies—but only by strictly meeting the conditions and timeline laid down. The Court has aligned judicial relief with this policy-based amnesty-like measure, ensuring consistency and certainty for both taxpayers and tax administration.

Significance or Implication of the Judgment (For general public or government)

For taxpayers—especially small businesses in Bihar—this order is a practical lifeline. Many assessees missed the strict appeal timelines for a variety of reasons (pandemic-related disruptions, compliance burdens, or unawareness of appellate procedures). The Court’s direction harmonises with the CBIC’s special window, allowing genuine disputes under Sections 73/74 to be heard on merits rather than being foreclosed by limitation alone—provided the taxpayer commits funds via the enhanced pre-deposit and adheres to the 31.01.2024 deadline. This encourages substantive justice and reduces the number of writ petitions filed solely to overcome limitation hurdles.

For the government and the tax department, the judgment ensures uniform implementation of the notification across Bihar. By directing the Commissioner to issue instructions, the Court seeks to prevent inconsistent treatment and unnecessary litigation at the field level. It preserves revenue interests through the 12.5% pre-deposit (with a cash-ledger component), while promoting voluntary compliance and faster resolution of legacy disputes. Overall, the decision balances fairness to taxpayers with protection of the exchequer, and signals that special statutory/administrative windows must be applied in a facilitative yet rule-bound manner.

Legal Issue(s) Decided and the Court’s Decision with reasoning

• Whether delay beyond the condonable period under Section 107(4) BGST can be condoned by the appellate authority or the High Court?
  Decision: No, ordinarily such delay cannot be condoned where the statute forbids condonation beyond one additional month. Reasoning: The appellate authority and writ court are bound by statutory limits on condonation; several precedents establish that specific limitation periods in a fiscal statute must be strictly applied.
• Whether CBIC Notification No. 53/2023–Central Tax allows filing/restoration of appeals otherwise time-barred under Section 107(4)?
  Decision: Yes, for orders under Sections 73/74 passed on or before 31.03.2023, subject to compliance with the notification (including pre-deposit) and the last date of 31.01.2024. Reasoning: The notification prescribes a special procedure creating a limited-period relaxation, and deems even previously filed/pending appeals to be valid if the conditions are met. The Court gave effect to this special regime.
• What is the practical outcome for the present litigant?
  Decision: The order rejecting the appeal (as time-barred) is set aside; the appeal is restored to the appellate authority’s file, to be heard on merits if the appellant satisfies the notification’s conditions within the stipulated time. Reasoning: Restoration aligns the case with the remedial window; failure to comply will result in rejection/maintainability failure.
• Whether similarly situated assessees can also benefit even if their writ petitions were earlier rejected due to delay?
  Decision: Yes. Reasoning: The Bench clarified that benefit of the notification may be invoked “de hors” earlier orders rejecting writs for limitation, subject to full compliance with the notification. The Court directed the Commissioner to issue instructions to this effect to ensure uniform application.

Case Title

M/s Mohammad Sakil (Sole proprietorship Firm) Vs. The Union of India

Case Number

Civil Writ Jurisdiction Case No. 13769 of 2023.

Coram and Names of Judges

Hon’ble the Chief Justice (K. Vinod Chandran) and Hon’ble Mr. Justice Rajiv Roy. Judgment dated 09.11.2023 (Uploading Date: 10.11.2023).

Names of Advocates and who they appeared for

• For the petitioner: Mr. Anurag Saurav, Advocate.
• For the respondents (State): Mr. Vivek Prasad (GP-7), assisted by Ms. Roona (AC to GP-7), Ms. Manisha Singh (AC to GP-7), Mr. Sanjay Kumar (AC to GP-7), and Ms. Supragya (AC to GP-7).

Link to Judgment

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