Delayed GST Appeal Restored for Merits Hearing: Rajasthan HC

By CA Sandeep Kanoi Goods and Services Tax Judiciary September 12, 2026

TaxGuru Citation: 2026 taxguru.in 12965
Case Name: Pooja Construction Company Vs Union of India (Rajasthan High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Rajasthan High Court

Upgrade to Basic or Premium to download.

Already Upgraded? Log in.

Pooja Construction Company Vs Union of India (Rajasthan High Court)

Summary: The Rajasthan High Court considered a writ petition filed by Pooja Construction Company seeking restoration of its GST registration and setting aside of the Order-in-Original dated 14.03.2024 and Order-in-Appeal dated 26.05.2025. The petitioner submitted that its GST returns could not be filed because the firm depended upon its accountant for statutory compliances and the accountant failed to communicate the relevant information. It also stated that it was unaware of the show cause notice and the cancellation order and, after learning of the cancellation, filed an appeal which was dismissed solely on limitation. The petitioner relied on earlier Division Bench decisions directing consideration of delayed GST appeals on merits.

The respondents opposed the petition on the ground that the appeal was barred by limitation. The Court noted that cancellation of the GST registration with effect from 14.03.2024 had brought the petitioner’s business operations to a standstill and observed that the reasons given for non-compliance appeared genuine. Following the approach adopted in the earlier Coordinate Bench decisions, the Court allowed the writ petition and set aside the appellate order dated 26.05.2025. The appellate authority was directed to consider and decide the petitioner’s appeal on merits in accordance with law, subject to deposit of applicable late fees, penalty and other statutory amounts. The Court did not itself decide the merits of the GST registration cancellation.

Cases Discussed

M/s Molana Construction Company v. Central Goods and Service Tax Department & Ors. — D.B. Civil Writ Petition No. 12076 of 2024, decided on 26.07.2024.
Man Singh Tanwar v. Commissioner, Central Goods and Services Tax Department & Ors. — D.B. Civil Writ Petition No. 14658 of 2024, decided on 09.09.2024.
RPC PSIPL JV Vs. State of Rajasthan & Ors. — D.B. Civil Writ Petition No. 7260/2025, decided on 02.07.2025.
RPC PSIPL JV Vs. State of Rajasthan & Ors. — D.B. Civil Writ Petition No. 11794/2025, decided on 12.08.2025.

FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT

1. The present writ petition has been filed seeking restoration of GST registration with effect from the date of cancellation i.e. 14.03.2024 and setting aside of the Order-in Original dated 14.03.2024 and the Order-in-Appeal dated 26.05.2025.

2. Learned counsel for the petitioner has submitted that the appeal filed by the petitioner has been dismissed solely on the ground of delay and none of the grounds raised in appeal have been considered, causing grave prejudice to the petitioners. It has been submitted that since inception, the petitioner, which is a proprietorship firm, is dependent upon the accountant for all statutory compliances, including filing of GST returns and it was only on account of non-communication by the accountant that the GST returns could not be filed by the petitioner.

3. Learned counsel further submitted that as the petitioner has reposed complete trust and confidence in the accountant, there was no occasion for it to presume any noncompliance or non-filing and thus, the delay, if any, ought to have been condoned by the authorities. It has also been stated that the petitioner was also unaware of issuance of any show cause notice as no physical show cause notice was received by it and even the fact of passing of the order in original dated 14.03.2024 was learnt by it subsequently and only thereafter, the appeal against the same was preferred. However, vide order dated 26.05.2025, the said appeal was dismissed solely on the ground of delay, thereby causing grave injury and prejudice to the petitioner.

4. Learned Counsel, while relying on the judgments passed by the Division Bench of this Court in D.B. Civil Writ Petition No.12076 of 2024 titled “M/s Molana Construction Company v. Central Goods and Service Tax Department & Ors” decided on 26.07.2024, D.B. Civil Writ Petition No.14658 of 2024 titled “Man Singh Tanwar v. Commissioner, Central goods and Services Tax Department & Ors.” decided on 09th September 2024, D.B. Civil Writ Petition No. 7260/2025 titled “RPC PSIPL JV Vs. State of Rajasthan & Ors” decided on 02.07.2025 and D.B. Civil Writ Petition No. 11794/2025 titled “RPC PSIPL JV Vs. State of Rajasthan & Ors” decided on 12.08.2025 has prayed that the Respondent Department be directed to entertain appeal of the Petitioner.

5. Learned counsel for the respondents vehemently disputes the above submission and contends that the appeal has rightly been dismissed being barred by limitation and no interference in the order dated 26.05.2025 is warranted.

6. We have heard the counsel for the parties and perused the record.

7. It is a matter of record that GST registration of the petitioner has been cancelled with effect from 14.03.2024 which is virtually a civil death thereby bringing the business operations of the petitioner at a stand still. As per the petitioner, its accountant, who was entrusted with the responsibility to file the returns and to ensure all the legal and statutory compliances, has failed to perform his duty and on account of failure to file returns continuously for 6 months, the GST registration of the petitioner was cancelled. The reasons mentioned in the petition for noncompliance of the relevant provisions of the Act within the prescribed time, in the considered opinion of this Court, appears to be genuine.

8. This Court in the above relied upon judgments while allowing the writ petitions, have issued directions to entertain the appeal on merits.

9. For the foregoing reasons and taking benefits of the order passed by the Coordinate Bench of this Court, we allow the present writ petition and accordingly, set aside the order dated 26.05.2025 (Annex.5) passed by the appellate authority. The appellate authority is directed to consider and decide the appeal of the petitioner on its own merits, in accordance with law, subject to the petitioner firm depositing late fees, penalty and other statutory deposits for entertaining the appeal, as admissible.

10. Stay petition and all pending applications, if any, stand disposed of.