Accountant Lapse Justifies Condonation of 452-Day GST Appeal Delay: Rajasthan HC

Ritik Acharya S/o Krishan Acharya Vs Union of India (Rajasthan High Court)

Summary: Rajasthan High Court condoned a delay of 452 days, after granting relaxation of 120 days under Section 107 of the CGST Act, in filing an appeal against cancellation of the petitioner’s GST registration. The Order-in-Original cancelling registration was passed on 21.06.2024 and the appeal filed on 14.01.2026 was dismissed by the Appellate Authority on 17.03.2026 as time-barred, since the authority lacked power to condone the delay beyond the statutory period. The petitioner explained that the delay resulted from bona fide and unavoidable circumstances, including inadvertence and lack of proper professional assistance under the GST regime. Having relied upon his accountant for statutory compliances, he could not take the necessary appellate steps within time.

The High Court recognised that the Appellate Authority is bound by the limitation prescribed under Section 107 of the RGST Act, but held that where the circumstances preventing timely filing were beyond the petitioner’s control, denial of adjudication on merits would cause grave injury and prejudice. The Court followed its earlier Division Bench decisions concerning delayed GST appeals. It also specifically referred to M/s M R Traders v. UOI, which distinguished the restricted statutory power of the Appellate Authority from the plenary jurisdiction of constitutional courts under Article 226. That decision also emphasised that cancellation of GST registration and permanent exclusion from the GST framework could impair business and livelihood, and that the CGST Act has a facilitative as well as revenue-related purpose. Following the consistent view of the Coordinate Benches, the High Court allowed the writ petition to the extent of condoning the 452-day delay, set aside the appellate order dated 17.03.2026 and directed the Appellate Authority to entertain and adjudicate the appeal on merits. The underlying validity of the GST registration cancellation was left for the Appellate Authority to determine.