HC Grants Liberty to File Time-Barred Appeal, Bypassing Writ Petition.

HC Grants Liberty to File Time-Barred Appeal, Bypassing Writ Petition.

Issue

Can a taxpayer, who did not participate in the original adjudication proceedings (by not filing a reply to the SCN or attending the hearing) and subsequently missed the statutory deadline for an appeal, be granted a fresh opportunity by the High Court to file that appeal?

Facts

• An airline (petitioner) received a Show Cause Notice (SCN) alleging it had claimed excess and ineligible Input Tax Credit (ITC).
• The petitioner did not file any reply to the SCN and did not attend the personal hearing.
• Consequently, the assessing authority passed an adverse assessment order confirming the demand.
• The petitioner then filed a writ petition in the High Court, challenging both the SCN and the final order.
• During the writ hearing, the petitioner chose not to pursue the challenge and instead requested liberty (permission) to file a statutory appeal under Section 107, even though the time limit for doing so had already expired.

Decision

• The High Court granted the petitioner’s request and remanded the matter to the appellate authority.
• It gave the petitioner a new, fixed deadline (until November 15, 2025) to file the statutory appeal, subject to making the requisite pre-deposit.
• The court explicitly directed the appellate authority to accept the appeal, hear it on its merits, and not dismiss it as time-barred, provided it was filed within this new window.
• The petitioner was permitted to raise all grounds and submit all documents before the appellate authority.

Key Takeaways

• Writ Jurisdiction as a Gateway: This case demonstrates the High Court’s discretionary power under writ jurisdiction. Even when a taxpayer has defaulted on procedural timelines (both at the SCN and appeal stages), the court can intervene to create a final opportunity for the case to be heard on its merits.
• Preference for Statutory Remedies: The High Court chose not to decide the merits of the tax dispute itself. It reinforced the legal hierarchy by directing the taxpayer back to the statutory appellate authority, which is the proper forum for factual and legal adjudication.
• Condonation of Delay: The court effectively used its writ power to condone a delay that the appellate authority itself had no power to condone, ensuring the taxpayer was not left without a remedy.
• No Benefit in Ignoring Notices: While the petitioner ultimately got relief, their failure to respond to the SCN led to a more complex and costly legal route. Participating in the original proceedings is always the proper first step.