Bhagwati Industries Vs Union of India (Rajasthan High Court)
The Rajasthan High Court considered a writ petition filed by the petitioner seeking directions to the respondents to entertain an appeal against the Order in Original dated 28.11.2025 passed by the Assistant Commissioner, CGST Division, Sikar, and to condone the delay in filing the appeal. The impugned order had raised a GST demand of ₹79,85,472 for Financial Years 2018-19 and 2023-24 on account of alleged non-payment of tax under the Reverse Charge Mechanism (RCM) on royalty, DMET and RMSET/NMET expenses. The petitioner filed the writ petition on 03.07.2026 after being unable to file the statutory appeal because the GST portal reflected the appeal as time-barred.
The petitioner submitted that the delay occurred due to lack of knowledge regarding the GST portal, appellate procedures and technical provisions of GST law, as well as because the adjudication order had only been uploaded on the GST portal without any communication to him. It was further contended that immediately after becoming aware of the order, steps were taken to file the appeal, but the portal prevented its filing owing to limitation.
The petitioner also submitted that the delay was bona fide. It was stated that the petitioner had discontinued business since 2024, had nil turnover, and had completely closed the business. Being not fully educated and unfamiliar with the GST portal, the petitioner relied upon the Chartered Accountant and Accountant for GST compliances and remained unaware of the Show Cause Notice and adjudication order. It was further submitted that closure of the business caused severe financial distress, resulting in depression and ill health, for which the petitioner remained under medical treatment.
