Case: Andra Pradesh High court- In the case of M/s S A Iron and Metal Vs The Assistant Commissioner (ST) (WP No. 15490 of 2023) dated 19th July 2023
Facts
- Taxpayer is a registered dealer and is engaged in the business of purchase and sale of iron scrap. On 21.01.2023, the Assistant Commissioner (ST) Regional GST Audit and Enforcement Wing conducted inspection in the business premises of the taxpayer and ascertained the amount of Rs.5,48,29,347/- vide Orders under DRC-07.
- As the taxpayer’s accounts were frozen by the Department, he could not mobilize the funds required for pre-deposit of 10% of the disputed tax for filing appeal, which is mandatory for filing an appeal.
- Taxpayer challenging the correctness of the Order passed, carried the matter before the Appellant Authority under Section 107 of the A.P. G.S.T Act, 2017 along with a request to condone delay of 25 days in preferring the appeal.
- Taxpayers contests that the application for condonation of delay for 25 days was rejected without considering the genuine reason and the order for rejection was passed by the department. Aggrieved by the order, the taxpayer is before the court seeking justice.
Held
- The court pressed upon the fact that “justice-oriented approach” is required to be adopted. The expression ‘sufficient cause’ is adequately elastic to enable the courts to apply the law in a meaningful manner which subserve the ends of justice that being the life-purpose for the existence of the institution of Courts.
- It was observed that while considering the application for condonation of delay, it is not the length of the delay, but cause for delay which would be paramount consideration. If the cause shown as indicated under Section 107(4) of the act, such delay deserves to be condoned irrespective of the length of the delay.
Our comments
The aforementioned judgement by the hon’ble high court presses upon the fact that the revenue department needs to take a lenient view while dealing with the taxpayers. Each and every case which comes up before the learned officers are unique and cannot be looked upon with the same lens. Each and every case should be decided on the basis of merits, so that the justice is being served and not denied.