Kaajal Agarwal Vs State Tax Officer (Madras High Court)
The writ petitions were heard and decided by the Madras High Court concerning rejection of a GST appeal on limitation and the underlying assessment for Financial Year 2019–2020. The petitioner challenged an assessment order dated 28.08.2024, passed on allegations of mismatch in Input Tax Credit between GSTR-1 and GSTR-3B and excess ITC claim. Although the petitioner had submitted a reply to the show cause notice disputing the mismatch, the assessing authority confirmed the demand of ₹65,37,201 along with interest and penalty without considering the reply.
Aggrieved, the petitioner filed a rectification application, which was rejected on 06.02.2025. Thereafter, an appeal was filed before the appellate authority on 07.03.2025 with a delay of 67 days. The appellate authority dismissed the appeal at the threshold on the ground of limitation. The petitioner approached the High Court seeking condonation of delay and a direction for adjudication of the appeal.
The Court noted that the delay occurred because the petitioner was pursuing the rectification application and found the explanation for the delay to be genuine. It held that dismissal of the appeal solely on limitation, without considering these circumstances, was not justified. Accordingly, the Court condoned the delay of 67 days in filing the appeal. The appellate authority was directed to take the appeal on record, subject to payment of 15% of the disputed tax demand (comprising 10% statutory pre-deposit and an additional 5% agreed by the petitioner) within two weeks.
