Moms Cradle Private Limited Vs Union of India & Anr. (Delhi High Court)
Conclusion: The strict 4-month statutory limitation period for filing a GST appeal under Section 107 could not be condoned, as the provision created a special regime that excluded the general principles of condonation of delay under the Limitation Act.
Held: Assessee-company was an exporter of readymade garments. The dispute arose from two separate writ petitions: one challenging the withholding of a GST refund and another seeking permission to file a delayed statutory appeal against an order demanding payment for fraudulent availment of Input Tax Credit (ITC). Assessee had claimed a refund of IGST, which was initially rejected but later partially allowed by Appellate Authority to the tune of Rs. 32,52,301/-. However, Department withheld this refund, citing a separate demand raised against assessee for fraudulent ITC availment. Assessee failed to file a statutory appeal within the prescribed period of three months, extendable by one month. Consequently, assessee filed writ petition seeking condonation of the delay and permission to file the appeal. Assessee argued that the appeal was filed late due to the director’s severe illness and a lapse in verifying the order. It was also contended that the copy of the order uploaded on the portal was illegible, and assessee came to know of the order only when the refund matter was listed before the Court. Department objected that assessee’s director had actively participated in the adjudication proceedings and the order was duly communicated via email on the registered address on the date it was passed. He argued that assessee’s claim of ignorance was false and misleading. It was held that once the statutory period of three months plus one month under Section 107(1) and (4) lapses, delay could not be condoned even under Article 226. Assessee, having participated in proceedings, could not plead ignorance of the order. Assessee seeking permission to file appeal beyond limitation was not maintainable. As regards refund, authorities may process the refund and adjust the same against the demand raised under the Order-in-Original, in accordance with law.
