Top Stories Case Digest: Condonation of Delay under GST Act This case digest deals with the cases related to condonation of delay under GST Act, 2017 By Sneha Sukumaran Mullakkal – On November 30, 2024 5:01 pm – 10 mins read The Goods and Services Tax ( GST ) Act, introduced on July 1, 2017, replaced multiple indirect taxes in India with a single, unified system. It simplifies taxation, promotes transparency, and supports ease of doing business by applying a common tax on goods and services. The GST Act sets strict deadlines for tasks like filing appeals or applications. However, delays can happen due to unavoidable reasons, such as unexpected events or technical difficulties.

To handle such situations, the law includes provisions like Section 107(4), which allows the appellate authority to condone (excuse) delays in filing appeals if there’s a valid reason. Taxpayers must explain the cause of the delay and request an extension, which is granted if the authority is satisfied with the explanation. S.107 of GST Act is a Complete Code, Excludes General Limitation Provisions: Allahabad HC Rejects Delay Condonation in Appeal [Read Order] M/S Umair Traders vs State Of Up And 2 Others CITATION: 2024 TAXSCAN (HC) 2128 The condonation application for delay in filing a Goods and Services Tax  ( GST ) appeal was rejected by the Allahabad High Court. The bench referred to the precedent where it was ruled that the Section 107 of the GST Act is a complete code and it excludes the general limitation provisions like Section 5 of the Limitation Act. The writ petition which challenged the dismissal of appeal on grounds of limitation was dismissed again by the high court. Taking M/s Yadav Steels as precedent, the court refuses to condone the delay in filing the GST appeal and dismissed the petition. Septic Shock Causes Delay in Filing GST Appeal, Clears Entire Tax liabilities: Madras HC condones Delay [Read Order] Great Heights Developers LLP vs Additional Commissioner CITATION: 2024 TAXSCAN (HC) 1961 In the recent case, the High Court of Madras condoned the delay in filing a GST appeal caused by septic shock.

The petitioner, had cleared the entire tax liability but was unable to meet the appeal deadline due to medical complications A single bench of Justice Senthilkumar Ramamoorthy directed the AA that if the appeal was submitted within ten days from the receipt of the order, it should be accepted and decided on its merits. Appellate Authority cannot Condone Delay beyond 4 Months u/s 107 of CGST Act: Jammu & Kashmir HC [Read Order] Jatinder Singh vs Union Territory of Jammu & Kashmir CITATION: 2024 TAXSCAN (HC) 1793 The Jammu & Kashmir and Ladakh High Court held that appellate authority cannot condone delay beyond four months under section 107 of Central Goods and Service Tax ( CGST ) Act, 2017. It was evident that this discretion conferred upon the appellate authority is restricted to condoning the delay only for a maximum period of one month. The reasons put forth by the petitioner for seeking condonation of delay are only ipsi dixit of the petitioner and do not bring the case of petitioner under exceptional circumstances warranting exercise of extraordinary jurisdiction by this Court to condone the delay.

The Court dismissed the Writ petition. 66 Days Delay in Filing GST appeal by Small Businessman due to Lack of Proper Knowledge of GST Portal: Calcutta HC Condones Delay [Read Order] Sukanta Pal vs Deputy Commissioner of State Tax CITATION: 2024 TAXSCAN (HC) 1722 The Calcutta High Court condoned the 66 days delay in filing the Goods and service Tax ( GST ) appeal by a small businessman due to lack of proper knowledge of the GST portal. Further directed the appellate authority to hear out and dispose of the appeal, on merit, upon giving an opportunity of hearing to the petitioner. While condoning the delay, the single bench of Justice Raja Basu Chowdhury  directed the appellate authority to hear out and dispose of the appeal, on merit, upon giving an opportunity of hearing to the petitioner, within a period of 8 weeks. Calcutta HC directs GST Registrant to File application under Limitation act for Delay in Appeal as Pre Deposit already Made [Read Order] Jharna Das vs The Deputy Commissioner of State Tax CITATION: 2024 TAXSCAN (HC) 1729 The Calcutta High Court directed the assessee to file application under Limitation Act, 1963 for delay in appeal as pre-deposit under Central Goods and Service Tax ( CGST )Act, 2017 was already made. The court held that an opportunity should be afforded to the petitioner to explain the delay, especially when the delay in filing the appeal is only marginal.

While setting aside the order of rejection of the appeal dated 29th February 2024 as appearing in form GST APL- 02, the court granted liberty to the petitioner to file an application under Section 5 of the Limitation Act, 1963. If such an application praying for condonation of delay is filed within a period of two weeks, the appellate authority shall hear out and dispose of the said application in accordance with law. GST Appellate Authority is competent to hear Appeal by Condoning Delay beyond one month from prescribed period u/s 107(4): Calcutta High Court [Read Order] Subhabrata Mukherjee vs Senior Joint Commissioner of Revenue State Tax CITATION: 2024 TAXSCAN (HC) 1726 In a recent case, the Calcutta High Court held that Goods and Services Tax ( GST ) Appellate Authority is competent to hear Appeal by condoning Delay beyond one month from prescribed period under section 107(4) of Central Goods and Service Tax ( CGST ) Act, 2017. A single bench of Justice Raja Basu Chowdhury held that no useful purpose will be served by remanding the matter to the appellate authority to reconsider the application for condonation of delay. Since, the explanation provided by the petitioner appears to be sufficient, by condoning the delay,the Court  directed the appellate authority to hear out and dispose of the appeal of merit after giving the petitioner an opportunity of hearing. Delay in Filing GST Appeal due to demise of Assessee’s Father: Calcutta HC Condones Delay [Read Order] Farinni Leather Private Limited vs The Joint Commissioner of State Tax CITATION: 2024 TAXSCAN (HC) 1704 The Calcutta High Court in a recent case condoned the delay in filing Goods and Service Tax ( GST ) appeal as the delay occurred due to demise of Assessee’s Father. The court viewed that the petitioner, having sufficiently explained the delay, the appellate authority ought to have appropriately considered the same. The court set aside the order passed by the appellate authority, refusing to condone the delay in filing the appeal under Section 107 of the said Act. Calcutta HC sets aside Order Rejecting Appeal u/s 107 of GST on sufficient explanation for Delay in filing Appeal [Read Order] Partha Pratim Dasgupta vs The Joint Commissioner of State Tax & Ors CITATION: 2024 TAXSCAN (HC) 1590 In the recent case, the Calcutta High Court, set aside an order rejecting appeal under section 107 of GST( Goods and Service Tax ) on sufficient explanation for delay in filing appeal and directed the Appellate Authority to hear the case within two months.

A Single Bench of Justice, Raja Basu Chowdhury, on hearing both the sides and considering the material records contended that the petitioner had adequately explained the reason for delay.Therefore, the appeal is to be reinstated to its original file and number and direct  the AA to hear the appeal on its merits within two months from the date of the order’s communication. GST Appeal rejected on Ground that it does not have Competence to Condone Delay beyond One Month: Calcutta HC restores matter for Hearing [Read Order] Partha Pratim Dasgupta vs The Joint Commissioner of State Tax & Ors CITATION: 2024 TAXSCAN (HC) 1444 In a recent case, the Calcutta High Court restored the matter for hearing as the  Goods and Service tax ( GST ) appellate authority rejected appeal solely on ground that it does not have competence to condone delay beyond one month time prescribed. However, at the same time, the aforesaid could not prevent the petitioner from maintaining an application for condonation of delay by invoking the provisions of Section 5 of the Limitation Act, 1963.

A single bench of Justice Raja Basu Chowdhury restore the aforesaid appeal to its original file and number and direct the Appellate Authority to hear out the same in accordance with law on merit within a period of two months from the date of communication of this order Bombay HC Quashes IGST Refund Rejection Order, Accepts 25-Day Delay Condonation Request Considering Nascent Stage of GST Regime [Read Order] Sanjeev Suresh Desai vs Union of India and Ors CITATION: 2024 TAXSCAN (HC) 1471 The division bench, comprising Justice K.R. Shriram and Justice Jitendra Jain of the Bombay High Court, quashed the Integrated Goods and Service Tax ( IGST ) refund rejection order and accepted the 25-day delay condonation request, taking into account the nascent stage of the GST regime. Further court rejected the department’s argument that the writ petition is not maintainable as it has been filed beyond the time provided for an appeal and held that writ jurisdiction is invokable in light of Article 300A.while remanding the matter for reconsideration, directed the department to reconsider the application on its merits. CESTAT quashed the order rejecting Integrated Goods and Service Tax ( IGST ) on the grounds that the order was passed without any reason and without application of mind. Application for Revocation of Cancellation of GST Registration u/s 30 of CGST Act Rejected: Patna HC directs Appellate Authority for Consideration on Merits [Read Order] M/s Ali Infra vs The State of Bihar through the Principal Secretary CITATION: 2024 TAXSCAN (HC) 1369 The Patna High Court has directed the Appellate Authority to consider on merits the application for revocation of cancellation of Goods and Service Tax Act ( GST )  registration under Section 30 of the CGST Act, 2017, ( Central Goods and Service Tax Act ) which had been previously rejected. In such circumstances, the appeal has to be treated to be on time computing the period from 18.09.2023 revocation of cancellation, which was the impugned order in the appeal.

Thus, the Coram of Justice K. Vinod Chandran  and Justice Harish Kumar set aside the appellate order dated 20.12.2023 and resurrected the appeal to the files of the appellate authority. The appellate authority shall consider the same on merits after affording an opportunity of hearing to the petitioner. Accordingly, the writ petition stands allowed. 38 Days delay in Filing GST Appeal due to Illness of Proprietor: Calcutta HC Directs Appellate Authority to Hear Case on Merit [Read Order] Krishna Enterprise vs The Commissioner CITATION: 2024 TAXSCAN (HC) 1395 The Calcutta High Court directed to rehear the matter of 38 days delay in filing an appeal against the assessment order under the Central Goods and Service Tax ( CGST ) Act, 2017 due to the illness of the Proprietor. The Court viewed that justice will be sub-served if the appeal is directed to be heard out on merits subject to payment of costs of Rs.5,000/- to be paid by the petitioner to the State Revenue Authorities.

If such payment is made within two weeks from date, the appellate authority shall hear out and dispose of the appeal on merits preferably within a period of two weeks. Dy. GST Commissioner issued Demand Notice for Recovery of amount Pursuant to Assessment Order: Kerala HC Halts Recovery Steps [Read Order] M/S P KANDANKUTTY AND SONS SEA QUEEN HOTEL vs DEPUTY COMMISSIONER OF STATE TAX CITATION: 2024 TAXSCAN (HC) 1305 The Kerala High Court has halted recovery steps after the Deputy Commissioner issued a demand notice for the recovery of the amount following the assessment order. The Single Bench of Justice Murali Purushothaman, held that the entire process must be concluded within two months from the date of receiving a copy of this judgment. During the period until the stay petition is resolved, no recovery steps shall be taken against the petitioner. Consequently, the writ petition was disposed of as per the aforementioned directives. Date of Filing is Always taken as Date of Initial Filing through Online Mode: Delhi HC remits matter to GST Commissioner to consider Delay Condonation [Read Order] M/S WHITE MOUNTAIN TRADING PVT. LTD vs ADDITIONAL COMMISSIONER CITATION: 2024 TAXSCAN (HC) 669 The Delhi High Court remitted matter to GST Commissioner to consider delay condonation and noted that the date of filing is always taken as date of initial filing through online mode.

“As the Commissioner Appeals has erroneously not considered the application seeking condonation of delay solely on the ground that appeal same was beyond the period prescribed under Section 107 (4) of the Act and thus beyond the powers vested in the Commissioner Appeals, we set aside the said order and remit the matter to the Commissioner Appeals to consider the application seeking condonation of delay in accordance with law” the Court directed. Appellate Authority Empowered to Condone Delay beyond One Month from Prescribed Period of Limitation u/s 107 (4) of WBGST Act: Calcutta HC [Read Order] Mukul Islam vs Assistant Commissioner of Revenue CITATION: 2024 TAXSCAN (HC) 1027 The Calcutta High Court recently held that the appellate authority empowered to condone delay beyond one month from prescribed period of limitation under Section 107 (4) of the West Bengal Goods and Services Tax Act, 2017 ( WBGST Act ).

“Having regard to the above, in my view the appellate authority is not denude of its power to condone the delay beyond one month from the prescribed period of limitation as provided for in Section 107 (4) of the WBGST Act” the Court noted.  Proper Officer should reach Objective satisfaction before Cancelling GST Registration Retrospectively: Delhi HC [Read Order] M/S SALASAR TRADING COMPANY vs PRINCIPAL COMMISSIONER OF GOODS AND SERVICE TAX NORTH DELHI CITATION: 2024 TAXSCAN (HC) 531 In a recent decision, a division bench of the Delhi High Court observed that Proper Officer should reach objective satisfaction before cancelling GST Registration retrospectively. “In view of the aforesaid, order dated 31.07.2023 cannot be sustained and is accordingly set aside. The GST registration of the petitioner is restored.

The petitioner shall, however, make all necessary compliances and file the requisite returns and information inter alia in terms of Rule 23 of the Central Goods and Services Tax Rules, 2017” the Bench added. Plea for Condonation of Delay under Limitation Act beyond the Statutory period prescribed u/s 107(4) of GST Act not Accepted: Tripura HC [Read Order] Sri Sanjib Kumar Pal vs Union of India CITATION: 2023 TAXSCAN (HC) 1322 In a recent case, the Tripura High Court has held that a plea for condonation of delay under the limitation act beyond the statutory period prescribed under section 107(4) of the Goods and Service Tax (GST) Act, 2017 is not accepted. Further held that any plea for condonation of delay relying upon the Limitation Act, 1963 beyond the statutory period prescribed under Section 107(4) of the Act of 2017 cannot be accepted. The Court dismissed the petition. No Recovery of Refunded Cess Amount by Revenue Department: J&K and Ladakh HC dismisses Appeal Filed with Delay of 1488 days [Read Order] Commissioner Central GST and Central Excise J&K vs Intex Industries SIDCO Industrial Complex CITATION: 2023 TAXSCAN (HC) 1277 The Jammu and Kashmir and Ladakh High Court dismissed appeal filed with delay of 1488 days and upheld the ruling that no recovery of refunded cess amount by the Revenue Department. A Division Bench of the High Court comprising Chief Justice N Kotiswar Singh and Justice Wasim Sadiq Nargal observed that “In view of the above, what has been said by the Division Bench of this Court in order dated 23.05.2022 passed in CEA No. 10/2020 and also upheld by the Supreme Court, same applies on all counts to the application on hand. Accordingly, the appeal bearing No. CEA No. 117/2023 is dismissed along with connected applications(s) being barred by limitation.”

Cancellation of GST Registration Certificate by Mistake of Accountant: Madras HC Condones Delay [Read Order] M/s.Sathya Furnitures vs The Assistant Commissioner (ST) (FAC) CITATION: 2023 TAXSCAN (HC) 695 The Madras High Court condoned the delay in filing the appeal as the petitioner’s GST Registration Certificate was cancelled due to the mistake committed by the accountant. The Single Bench further went on to state that the petitioner may be permitted to approach the appellate authority before whom all conditions for entertaining the appeal such as pre-deposit would be applicable. If appeal is filed within a period of one week from today, it shall be entertained without reference to limitation but ensuring compliance with all other requirements including pre-deposit. Patna HC restores GST Registration on non-consideration of response to SCN and delay amidst Covid [Read Order] Kala Coke and Chemicals Pvt. Ltd vs State of Bihar CITATION: 2023 TAXSCAN (HC) 106 A Division Bench of the Patna High Court (HC)restored GST Registration on non-consideration of response to Show Cause Notice (SCN) and delay amidst covid. Quashing the order, the Court observed that “The petitioner’s registration restored, with a further direction to the Commissioner, Department of State Taxes, Government of Bihar, Patna to finalize the petitioner’s assessment and/or pass appropriate orders, in accordance with law.” GST: Appellate Authority cannot condone Delay beyond 30 Days, says Allahabad HC [Read Order]

In a significant ruling under GST, the Allahabad High Court has held that the appellate authority is not empowered to condone delay beyond 30 days. After granting time to the department, the Court granted stay to the petitioner with a condition to deposit 50% of the disputed amount of tax and furnishing security for the balance amount of disputed tax in the shape of other than cash and bank guarantee within a period of one month.