Challengers Events Private Limited Vs State of Rajasthan (Rajasthan High Court)
The Rajasthan High Court considered a writ petition seeking directions to the respondents to entertain the petitioner’s appeal, condone the delay in filing it, and permit the challenge to the Order-in-Original dated 25.07.2023 for Financial Year 2021-22. The impugned order, passed by the Assistant Commissioner, Circle-H, Jaipur IV, raised a GST demand of Rs.6,55,124 on account of wrongful availment of Input Tax Credit.
The petitioner submitted that the delay occurred because the assessment order had been uploaded on the GST portal under the category “Additional Notices and Orders” instead of the prescribed category “Notices and Orders.” According to the petitioner, there was no reason in the ordinary course to search the incorrect category, and the assessment order was discovered only by chance. Upon locating the order, the petitioner immediately attempted to file an appeal, but the online portal reflected the appeal as time-barred. The petitioner further stated that the writ petition was filed on 05.07.2024 after a delay of 226 days, taking into account the statutory power to condone delay of 120 days under Section 107 of the CGST Act, 2017.
The petitioner relied upon several Division Bench judgments of the Rajasthan High Court, contending that sufficient cause had been shown for the delay, which occurred due to circumstances beyond the petitioner’s control, and therefore the appeal should be entertained on merits after condoning the delay.
The respondents opposed the writ petition, submitting that the assessment order had been correctly passed and that the appeal was barred by limitation.
The High Court observed that although the Appellate Authority is bound by the limitation prescribed under Section 107 of the RGST/CGST Act, 2017, the reasons preventing the petitioner from filing the appeal within the prescribed period were beyond the petitioner’s control. The Court held that refusal to adjudicate the appeal on merits would cause grave injury and prejudice to the petitioner.
Noting that in the judgments relied upon by the petitioner, the Court had consistently directed that such appeals be entertained on merits, the High Court followed the same approach. It allowed the writ petition to the extent of condoning the delay in filing the appeal.
The Court directed the Appellate Authority to entertain and decide the petitioner’s appeal on merits, provided the appeal is filed within 30 days from the date the High Court’s order is uploaded on its website. The stay petition and all pending applications were also disposed of.
Cases Discussed
- RPC PSIPL JV Vs. State of Rajasthan & Ors., 2025 D.B. CWP 11794/2025
- RPC PSIPL JV Vs. State of Rajasthan & Ors., D.B. CWP 7260/2025
- Man Singh Tanwar v. Commissioner, Central goods and Services Tax Department & Ors., D.B. CWP 14658/2024
- M/s Molana Construction Company v. Central Goods and Service Tax Department & Or, 2024 SCC OnLine Raj 3938
- M/s M R Traders v. UOI, 2026 SCC OnLine RAJ 2115
FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT
1. The petitioner herein, inter alia, seeks a direction commanding respondents to entertain the appeal and also condone the delay and allow the filing of appeal against the impugned Order in Original, dated 25.07.2023 (Financial Years 2021-22) passed by the Office of Assistant Commissioner, Circle-H, Jaipur IV, whereby GST demand of Rs.6,55,124/- for Financial Year 2021-22, was raised on the account of Wrongful availment of Input Tax Credit by the petitioner.
2. The learned counsel for the petitioner submits that the delay in filing the appeal occurred on account of the assessment order having been uploaded on the portal under the wrong category of “Additional Notices and Orders” instead of the prescribed category of “Notices and Orders”. He further contends that the petitioner, in the ordinary course, had no reason to check other categories and was under the bonafide impression that the order would be available under the correct head and further submits that the petitioner came to know about the impugned assessment order only by chance upon locating it under the wrong category, whereafter he immediately took steps to prefer the appeal but the appeal against the said orders could not per force be filed before the Appellate Authority as the online status of the appeal would reveal that the same is time-barred.
3. Learned counsel for the petitioner submits that he filed the instant writ petition on 05.07.2024 against the impugned order after a delay of 226 days (factoring in the power to condone the delay of 120 days under Section 107 of the CGST Act, 2017).
4. In the aforesaid backdrop, we have heard the learned counsels for the parties and perused the record.
5. Learned Counsel for the petitioner, relying on the various Division Bench judgments of this very Court in M/s M R Traders v. UOI1, M/s Molana Construction Company v. Central Goods and Service Tax Department & Or2, Man Singh Tanwar v. Commissioner, Central goods and Services Tax Department & Ors.3, RPC PSIPL JV Vs. State of Rajasthan & Ors.4 and RPC PSIPL JV Vs. State of Rajasthan & Ors.5 argues that sufficient cause of delay in filing the appeal due to circumstances beyond control has been shown and thus appeal be directed to be considered on merits after condoning the delay by this Court.
6. Learned counsels for the respondents oppose the above submission and contends that the impugned order has rightly been passed and appeal is now barred by limitation.
7. Having heard, as above, it transpires that while it is true that the Appellate Authority is bound by the statutory provisions of limitation provided under Section 107 of the RGST/CGST Act, 2017, however, considering the reasons owing to which the petitioner could not submit its appeal within the stipulated time, being beyond its control, non-adjudication of appeal on merits would cause grave injury and prejudice to the petitioner.
8. In the judgments cited above, this Court, while allowing the writ petitions, have issued directions to entertain the appeal on merits.
9. In the premise, following the consistent view as already taken by this Court, ibid, we allow the present writ petition to the extent of condoning the delay in filing of the appeal by the petitioner.
10. Accordingly, the Appellate Authority shall now entertain the appeal of the petitioner and adjudicate the same on merits, provided the same is filed within 30 days of the instant order being uploaded on the website of this court.
11. Stay petition and all pending application also stand disposed of.
Notes:
1 2026 SCC OnLine RAJ 2115
2 2024 SCC OnLine Raj 3938
3 D.B. CWP 14658/2024
4 D.B. CWP 7260/2025
5 D.B. CWP 11794/2025
