Akash Construction Vs State of Rajasthan (Rajasthan High Court)
The Rajasthan High Court examined a writ petition challenging dismissal of a statutory GST appeal on the ground of limitation and the consequential confirmation of a substantial tax demand. The petitioner, a partnership firm engaged in construction and registered under the Rajasthan Goods and Services Tax Act, 2017 (RGST Act), was subjected to adjudication proceedings culminating in an order dated 11.09.2024 raising a demand of ₹65,19,288 for alleged excess utilisation of Input Tax Credit of ₹48,23,718 for the period April 2022 to March 2023.
Aggrieved, the petitioner filed a statutory appeal before the Appellate Authority on 18.03.2025 along with an application seeking condonation of delay. The petitioner asserted that the adjudication order had not been duly communicated and that no intimation was received on its registered email. According to the petitioner, actual knowledge of the order was acquired only on 13.02.2025 upon initiation of recovery proceedings through DRC-13, following which the appeal was filed without further delay. However, the Appellate Authority dismissed the appeal as time-barred on 26.05.2025, without entering into the merits or accepting the explanation for delay.
Before the High Court, the petitioner contended that the appellate order was arbitrary and illegal as the Appellate Authority failed to exercise its jurisdiction under Section 107(4) of the RGST Act, which empowers condonation of delay upon sufficient cause being shown. It was argued that the authority mechanically computed limitation from the date of upload on the GST portal, without considering the plea of non-service or recording reasons on the explanation furnished. The petitioner further alleged violation of principles of natural justice in the original adjudication and urged that dismissal of the appeal on a technical ground had resulted in serious civil consequences by confirming a large demand without appellate scrutiny.
