Medical & Family Circumstances Justify Condonation of GST Appeal Delay: Rajasthan HC

Saini Construction Company Vs State of Rajasthan (Rajasthan High Court)

Summary: Rajasthan High Court allowed the writ petition of Saini Construction Company and condoned a delay of 244 days, after granting relaxation of 120 days under Section 107 of the CGST Act, in pursuing an appeal against cancellation of its GST registration. The petitioner’s registration had been cancelled by Order-in-Original dated 30.01.2023. An appeal filed on 29.01.2024 was dismissed by the Appellate Authority on 05.02.2024 as time-barred on the ground that the authority had no power to condone the delay, following which the writ petition was filed on 10.05.2024. The petitioner explained that the delay was bona fide and unintentional. His mother had passed away, resulting in family disputes concerning her estate and assets which occupied his attention. The petitioner also suffered from a hernia and underwent surgery in 2023, preventing him from attending to his legal and business affairs. It was further submitted that the delay had occurred due to non-communication of the order.

The High Court observed that although the Appellate Authority is bound by the statutory limitation prescribed under Section 107 of the RGST/CGST Act, 2017, the circumstances preventing the petitioner from filing the appeal within time were beyond his control and refusal to adjudicate the appeal on merits would cause grave injury and prejudice. Following the consistent view adopted in earlier Division Bench decisions including M/s M R Traders v. UOI, Man Singh Tanwar v. Commissioner, Central Goods and Services Tax Department & Ors. and the other cited cases, the Court condoned the delay. The Appellate Authority was directed to entertain and adjudicate the appeal on merits, provided it is filed within 30 days from uploading of the High Court’s order on its website. The High Court did not adjudicate the underlying cancellation dispute on merits.