Introduction
Deadlines in GST law are not flexible. Unlike income tax or civil matters, where courts often condone delays, GST works on a strict timeline—if you miss the deadline, you lose your appeal. No second chances.
This is precisely what happened in Parihar Tent Workers vs. Appellate Authority & State GST Department. The taxpayer lost the appeal by only nine days, and that proved sufficient for their case to be rejected. They approached the High Court under writ jurisdiction, expecting relief, but the court did not interfere, stating GST legislation does not provide for extension beyond what the Act stipulates.
This case is a wake-up call for companies—a delay of just a few days can lead to massive tax liabilities. Let’s discuss: what went wrong, why the High Court declined to assist, and how taxpayers can steer clear of such expensive errors.
What Went Wrong?
Parihar Tent Workers, a GST-registered company, was issued a demand notice of ₹92,48,360 for FY 2021–2022.
They preferred an appeal, which was nine days past the deadline, beyond the four-month statutory time under Section 107 of the CGST Act.
The Appellate Authority dismissed the appeal, citing that GST law does not allow condonation after this period.
The taxpayer turned to the Madhya Pradesh High Court under writ jurisdiction in hopes of relief.
The High Court rejected the petition, citing that time limits under GST law have to be stringently complied with.
The taxpayer didn’t lose because they had a bad case—they lost because they didn’t meet a deadline. That’s all it took.
What Does GST Law Say Regarding Appeal Deadlines?
According to Section 107 of the CGST Act, 2017:
You get three months to file an appeal from the order date.
You can get a one-month extension if you give a valid reason.
After four months, no extension is given—regardless of the reason.
The Limitation Act does not cover GST appeals. This implies that neither the Appellate Authority nor the High Court can grant an extension of time. Once the window passes, your right to appeal is lost forever.
Why Did the High Court Reject the Writ Petition?
What the Taxpayer Argued:
The taxpayer referred to earlier cases where delays were waived and argued that their appeal must be heard as well.
They argued the appeal should be admitted on merits despite being a little delayed.
What the GST Department Argued:
The department referred to M/s Sai Rubber Works vs. State of MP, which held that fiscal legislation is strictly required to be complied with in terms of timelines.
They mentioned that Section 107 doesn’t permit condonation for more than four months, irrespective of the situation.
What the High Court Said:
Rules are rules. GST law has well-defined boundaries, and courts cannot supersede them.
The court cited the Supreme Court’s decision in Chintels India Ltd. vs. Bhayana Builders Pvt. Ltd., which held that statutory timelines under fiscal legislations have to be strictly adhered to.
The taxpayer did not give any extraordinary reason for the delay that would warrant a writ intervention.
Final Verdict: The writ petition was rejected. Case closed.
One query is—can a taxpayer move the High Court under writ jurisdiction if their appeal is dismissed because of a lapsed deadline?
When is a Writ Sustainable?
According to Article 226 of the Constitution, High Courts can issue writs in extraordinary situations, like:
1. If the department failed to do natural justice (e.g., an order was passed without affording the taxpayer an opportunity of hearing).
2. Where the GST officer has acted beyond their jurisdiction (e.g., issuance of demand without jurisdiction).
3. Where the order is illegal and arbitrary on the face of it (e.g., incorrect interpretation of law resulting in wrongful demand).
When Will Courts Refuse to Hear a Writ in GST Cases?
Generally, tax case writ petitions are rejected because
-The assessee had another remedy (filing an appeal) available but did not exercise it within time.
-The delay is caused by negligence and not because of exceptional circumstances.
-There are factual disputes in the case, which are to be settled by the appellate authorities, not the High Court.
What Relief Can a High Court Provide Under Writ Jurisdiction?
Even where a writ is entertained, the High Court cannot grant an extension of time for filing an appeal. The court can only:
-Quash an order if it is held to be entirely unlawful.
-Order the department to re-examine the case, if natural justice principles were flouted.
Clarify a point of law, if there was a –misinterpretation of GST laws by the department.
But this much is certain—courts will not step in simply because a taxpayer failed to meet a deadline.
Lessons for Taxpayers
1. Never wait till the last moment to file an appeal
A common mistake businesses make is thinking “we still have time.” But GST law is ruthless—if the deadline passes, your right to appeal is gone forever.
Best practice: File your appeal within the first 60 days to avoid last-minute issues.
2. Maintain Proper Records of Demand Orders
Many businesses miss deadlines because they don’t track when they received the demand order.
Always note the exact date of receipt.
Maintain records of emails and paper copies to show when you received the notice.
3. Filing Appeals via GST Portal. As GST appeals can be filed online, delays are not justified.
4. Verify documents prior to filing to avoid rejection.
5. Set calendar reminders for each compliance deadline.
Final Thoughts
The case of Parihar Tent Workers is a classic illustration of how missing a deadline can be expensive in GST. Despite the fact that the taxpayer had strong points, their appeal was dismissed not on its merits, but on the grounds of being late.
After the deadline of an appeal, it’s lost forever.
Neither the High Court nor the Appellate Authority can revive it.
Moral of the Story?
GST legislation is strict—honor deadlines, or be prepared to shell out.
Author Comments:
In case you have missed your appeal filing due date in that case You can never assume that we have option to file Writ before High Court directly as alternative remedy of Delay. You have to identify the technical defects in service of Notice, Communication of Order or Defects in the Notice or Order that may considered by the courts that some wrong has been with the taxpayer to entertain the writ filed by Taxpayer and issue or Order under writ Jurisdiction is essential to protect the fundamental rights of the Taxpayers.
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Author can be reached at mr.himanshu@icai.org
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