Lack of knowledge of proceedings initiated against Assessee due to the death of persons having access to the communication is a valid ground for filing Appeal without insisting upon limitation

The Madras High Court has ruled that the death of staff members who managed communication with the Revenue Department can be a valid reason to file an appeal beyond the usual time limit. The court directed the Revenue Department to hear an appeal from Samadhu Medicals without strictly enforcing the limitation period. This decision was made because the assessee was unaware of the proceedings and the resulting order due to the unfortunate deaths of the individuals holding the contact details.

The Hon'ble High Court of Madras in the case of Samadhu Medicals vs Deputy State Tax Officer [W.P No. 35228 of 2023 dated December 18, 2023] disposed of the writ petition thereby directing the Revenue Department to hear the appeal to be filed by the Assessee, without insisting upon the aspect of limitation as the Petitioner was not in a position to know about the proceedings initiated against them and the consequential orders passed due to the death of persons having access to the communication with the Revenue Department. 

Facts

The Revenue Department ("the Respondent") initiated proceedings against the Samadhu Medicals ("the Petitioner") due to mismatch in Input Tax Credit ("ITC") between the GSTR-3B return and GSTR-2A statement for the Assessment Year ("AY") 2019-2020 vide order dated April 12, 2023 ("the Impugned Order") passed under Section 73 of the Central Goods and Services Tax Act, 2017 ("the CGST Act"). 

Aggrieved by the Impugned Order, the Petitioner filed a writ petition before the Hon'ble Madras High Court contending that, the Petitioner was not aware of the proceedings initiated against him as the person who are in possession of mobile number and Email ID provided on the GST Portal for communication i.e. the Petitioner staff member and the GST Consultant died. 

Issue

Whether the Petitioner should be granted leave to file appeal without insisting upon the aspect of limitation when the Petitioner was not in a position to know about the proceedings initiated against them and consequential orders passed due to the death of persons having access to the communication with the Revenue Department?

Held

The Hon’ble High Court of Madras in the case W.P No. 35228 of 2023 held as under:

• Opined that,  the Petitioner was not in a position to know about the proceedings initiated against them and the consequential orders passed. Hence, the Petitioner was not able to file appropriate application and appear before the Respondent Authorities to put forth their case by way of filing reply. 
• Held that, the writ petition is disposed. 
• Clarified that, the Petitioner has the liberty to approach the Respondent Appellate Authority by way of filing an appeal within thirty days. 
• Directed that, the Respondent Appellate Authority should entertain the appeal if filed by the Petitioner without insisting upon the limitation aspect, in accordance with law.