Deepak Stores Private Limited Vs Joint Commissioner of Commercial Taxes (Appeals) (Karnataka High Court)
Karnataka High Court, in Deepak Stores Private Limited vs. Joint Commissioner of Commercial Taxes (Appeals), ruled in favor of the petitioner by condoning a 3-day delay in filing a GST appeal. The case arose when Deepak Stores Pvt. Ltd. filed an appeal under Section 107 of the Karnataka Goods and Services Tax (KGST) Act, 2017, against an order issued on February 26, 2024. While the appeal was required to be filed within three months, the company submitted it on May 30, 2024—three days beyond the deadline. The appellate authority rejected the appeal solely on the ground of late submission without considering whether the delay fell within the condonable period of 30 days provided under Section 107(4) of the KGST Act. The petitioner argued that the delay was due to the managing director’s travel and that the authority had discretionary power to allow appeals filed within the additional month.
The High Court held that the appellate authority failed to exercise its discretion judiciously. The court emphasized that under Section 107(4), a delay of up to 30 days could be condoned if sufficient cause was shown. In this case, the petitioner had filed within the permissible extension period and provided a valid explanation. The court found that rejecting the appeal without evaluating the reason for the delay was improper. Consequently, the court allowed the writ petition, set aside the appellate order, and directed the appellate authority to hear the appeal on its merits. This ruling reaffirms the principle that minor procedural delays should not obstruct access to justice when statutory provisions allow for reasonable extensions.
