Karnataka HC Condones GST Appeal Delay as Rejection Reasons Were Not Justified

Dandin Moters Vs Joint Commissioner of Commercial Tax (Appeal) (Karnataka High Court)

The Karnataka High Court heard a writ petition challenging the order dated 27.03.2025 passed by the Joint Commissioner of Commercial Tax (Appeals), Kalaburagi, in GST AP No.526/2024-25. The appellate authority had dismissed the petitioner’s appeal solely on the ground that it was not filed within the prescribed period under the Karnataka Goods and Services Tax Act, 2017.

The petitioner contended that Section 5 of the Limitation Act was not expressly barred under the Karnataka GST Act and argued that the reasons for delay had been properly explained but were not considered by the appellate authority. The petitioner relied on the decision of the Calcutta High Court in Arvind Gupta vs. Assistant Commissioner of Revenue State Taxes and the Karnataka High Court decision in Shivanand Gurulingappa Patil vs. The Joint Commissioner of Commercial Taxes (Appeals), submitting that the delay was liable to be condoned in light of those judgments.

The learned Additional Government Advocate appearing for the respondents also submitted that, considering the decisions relied upon by the petitioner, the delay could be condoned.

After considering the submissions, the High Court observed that the impugned order did not disclose justifiable reasons explaining why the delay could not be condoned and that the sole reason assigned for rejection was not in accordance with law. The Court found the relief sought by the petitioner to be justified.

Accordingly, the High Court allowed the writ petition, quashed the order dated 27.03.2025 passed by the Joint Commissioner of Commercial Tax (Appeals), and condoned the delay in filing the appeal. The Court further directed the Joint Commissioner of Commercial Taxes (Appeals), Kalaburagi, to dispose of the appeal on merits.

FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT

Heard Sri.Yashas S.Dixit, learned counsel for the petitioner as well as Sri.Mallikarjun Sahukar, learned Additional Government Advocate who represents both the respondents.

2. Seeking a writ in the nature of certiorari quashing the order dated 27.03.2025 that was passed by the Joint Commissioner of Commercial Tax (Appeals) Kalaburagi in GST AP No.526/2024-25, the present writ petition is filed.

3. On the ground that the appeal was not filed within the time prescribed, the appeal stood dismissed.

4. Learned counsel for the petitioner submits that the applicability of Section 5 of the Limitation Act is not expressly barred by the Karnataka Goods and Services Tax Act, 2017. Learned counsel further submits that though the reasons for delay is explained, they are not considered. Submitting that the delay can be condoned and is liable to be condoned, learned counsel for the petitioner relies upon the decision of the High Court of Calcutta in WPA No.2904/2023 between Arvind Gupta and. Assistant Commissioner of Revenue State Taxes, Cooch Behar Charge and Others and also the decision of this Court in W.P.No.200898/2025 dated 22.03.2025 between Shivanand Gurulingappa Patil and The Joint Commissioner of Commercial Taxes (Appeals) Kalaburagi and Another. Both these decisions aptly apply to the facts of the case on hand.

5. Furthermore, learned Additional Government Advocate submits that in the light of the decisions referred by learned counsel for the petitioner, the delay can be condoned.

6. In the light of the submissions thus made and as the relief sought for is justifiable and further, as the impugned order does not indicate justifiable reasons as to why the delay cannot be condoned and as the sole reason shown is not in accordance with law, this Court considers desirable to set aside the impugned order. Hence, the following:

ORDER

i. Writ petition is allowed.

ii. The impugned order dated 27.03.2025 passed by the Joint Commissioner of Commercial Tax (Appeals) Kalaburagi in GST AP No.526/2024-25 is quashed.

iii. Consequently, delay as prayed for is condoned.

iv. The Joint Commissioner of Commercial Taxes, (Appeals) at Kalaburagi to dispose of the appeal on merits.