Delay in filing appeal due to filing of rectification petition can be condoned

In the case of  Tvl. SKL Exports v. Deputy Commissioner (ST)(GST)(Appeal) [W.P. No. 6825 of 2024 dated March 14, 2024], the Madras High Court addressed an important issue regarding the condonation of delay in filing an appeal. The delay was caused by the assessee’s pursuit of a rectification petition. The Hon’ble Madras High Court in this case held that the delay in filing appeal before the Appellate authority due to the reason the assessee preferred rectification petition should be condoned and directed the appellate authority to dispose the case on merits.

Facts:

M/s. Tvl. SKL Exports (“the Petitioner”), was issued with the assessment orders, against which the Petitioner preferred rectification petition, such petition was rejected. Thereafter, the Petitioner filed an appeal before the appellate authority, which was rejected on the ground of being beyond the period of limitation prescribed in Section 107 of the CGST Act.

The Petitioner before the hon’ble bench stated that rectification petitions were filed within the prescribed period of limitation.

Further, the Petitioner pointed out that it has paid the pre-deposit of 10% along with the sum towards the demand confirmed in the assessment orders.

Issue:

Whether the appeal filed immediately after the rejection of ratification petition was rightly rejected being time barred?

Held:

The Hon’ble Madras High Court in W.P. No. 6825 of 2024 held as under:

• Noted that, the delay in filing appeal was due to the reason that the Petitioner sought rectification petition which was rejected by the authority. Immediately after which the Petitioner preferred the appeal before the Appellate authority. The delay in filing appeal could be condoned by the appellate authority.
• Directed the appellate authority to dispose the appeal of the Petitioner on merits without going into the question of limitation.

Conclusion: The ruling in Tvl. SKL Exports v. Deputy Commissioner (ST)(GST)(Appeal) by the Madras High Court highlights the judiciary’s commitment to ensuring justice is served by focusing on the merits of the case rather than procedural lapses. By condoning the delay in filing the appeal, the Court has set a precedent that prioritizes fairness and the substantive rights of the parties involved. This judgment will likely influence future cases where procedural delays are caused by genuine and justifiable reasons.

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(Author can be reached at info@a2ztaxcorp.com)