Tvl. Deepa Traders Vs Deputy Commissioner (ST) (Madras High Court)
The Madras High Court considered a writ petition challenging a demand order dated 08.02.2023 passed by the Deputy Commissioner (ST) and the appellate order dated 25.04.2024 rejecting the petitioner’s appeal on the ground of delay. The petitioner, engaged in wholesale trade of paints, stated that monthly GST returns were regularly filed. However, due to ambiguity in post-GST procedures, the petitioner failed to notice a show cause notice dated 19.12.2022 that was uploaded on the GST portal pointing out discrepancies in GSTR returns. Thereafter, a demand order was issued.
According to the petitioner, knowledge of the demand arose only when coercive recovery steps were initiated, following which an appeal was filed with a delay of 285 days. The appellate authority dismissed the appeal solely on the ground of limitation. The petitioner contended that the delay was neither wilful nor deliberate but occurred due to bona fide reasons and sought quashing of both the demand order and the appellate order.
The respondents submitted that if the Court was satisfied about the sufficiency of reasons for delay, appropriate relief could be granted. The Court noted that although notices were uploaded on the GST portal, no hard copy had been served on the petitioner. Considering this circumstance, the Court held that reasonable cause had been shown for the delay in filing the appeal.
