It was on 23rd March 2020 that the Supreme Court extended the limitation period for filing petitions/applications/suits/appeals and all other proceedings in all courts and tribunals with effect from 15th March 2020 until further orders.
A bench headed by The Chief Justice of India passed this order taking Suo-moto cognizance of the situations arising from the COVID-19 pandemic. During the last month, on 8th March 2021, the Supreme Court ended the extension of the limitation period with effect from 14th March 2021 on observing improvement in the COVID-19 situation.
But recently, on 27th April 2021, the Supreme Court again extended the limitation period for filing of cases in courts and tribunals with effect from 14th March 2021 until further orders issued in this respect amidst the surging second wave of COVID-19 pandemic. Bench extended the period of limitation, restoring the order which was passed on 23rd March 2020.
Earlier, the order of the Apex court specified that the cases under which limitation period has expired during the period between 15th March 2020 till 14th March 2021, notwithstanding the actual period of limitation remaining, all persons shall have a limitation period of 90 days from 15th March 2021.
In the event, the actual balance period of limitation remaining, with effect from 15th March 2021, is greater than 90 days, then that longer period shall apply. The recent order of the Supreme Court extending the limitation period again w.e.f. 14th March 2021 till further orders has nullified its order dated 8th March 2021 which had concluded the limitation period on 14th March 2021.
Let us take an example, an order of cancellation of registration was issued to Mr. A, a registered supplier in Delhi on 7th January 2021 by proper officer u/s 29 of CGST Act, 2017 due to non-filing of returns for consecutive 6 months during the period June 2020 to November 2021.
Mr. A can file an appeal against the order of cancellation of registration in the Appellate Tribunal within 3 months from the date of order i.e., till 7th April 2021. Due to bad health, Mr. A is not able to file an appeal up-to 7th April 2021.
As per the order of the Supreme Court which extends the limitation period for all the taxpayers till further orders enable the taxpayers to file an appeal beyond 7th April 2021. Therefore, Mr. A can file such appeal which was due on 7th April 2021 till the further orders of the Supreme Court.
Impact on GST Proceedings/Appeals/Suits
The Indian Constitution’s Article 142 permits the Supreme Court for passing any order mandatory to do “Complete Justice” in any matter or cause pending before it. Therefore, Article 142 shall apply on the taxpayers under CGST Act to provide “Complete Justice” to all of them. Therefore, a proper officer defined under CGST Act is bound to act under directions issued in the abovesaid order.
Given this, the Commercial Tax Department, Chennai has issued the instructions to all the joint commissioners in respect of the exclusion of the period from 15th March 2020 till further orders, from the limitation period. Hence, all the taxpayers whose application has been rejected by the proper officer on the ground that the limitation period has expired for filing of appeals/petitions can approach GST Appeals.
Conclusion
In the view of abovesaid discussion, the further extension of the limitation period by the Supreme Court will provide an extended opportunity to the taxpayers for filing petitions/appeals. This means that now the proper officers will have to exclude the period starting from 15th March 2020.
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Posted by:
CA Tarun Kapoor
AKGVG & Associates