New Godara Trading Co. Vs State of Rajasthan (Rajasthan High Court)
Summary: The Rajasthan High Court, Jodhpur Bench, has held that although the Appellate Authority is bound by the limitation prescribed under Section 107 of the RGST/CGST Act, 2017, exceptional circumstances beyond the taxpayer’s control can justify intervention under Article 226 of the Constitution.
In the present case, M/s New Godara Trading Co. challenged the order dated 09.12.2025 passed by the Appellate Authority for FY 2021-22. The petitioner explained that the appeal could not be filed within the prescribed period because of lack of timely communication from its Chartered Accountant. The petitioner relied upon the Rajasthan High Court’s earlier decisions concerning delayed GST appeals, including M/s M R Traders v. UOI, M/s Molana Construction Company v. Central Goods and Service Tax Department & Ors., Man Singh Tanwar v. Commissioner, Central Goods and Services Tax Department & Ors., the two decisions in RPC PSIPL JV Vs. State of Rajasthan & Ors., and M/s Pratap Power Spares Vs. Union of India & Ors.
The respondents relied upon Sharwan Singh Devda Vs. The Union of India & Ors. to contend that the statutory limitation cannot ordinarily be circumvented through writ jurisdiction. The High Court, however, found that the present case involved circumstances beyond the petitioner’s control and that denial of adjudication on merits would cause grave injury and prejudice.
Accordingly, the Court set aside the order dated 09.12.2025 passed by the Appellate Authority and directed it to consider and decide the petitioner’s appeal on its own merits, in accordance with law, subject to the petitioner depositing late fees, penalty and other statutory deposits for entertaining the appeal, as admissible.
Analysis
The central issue before the Rajasthan High Court was whether the extraordinary writ jurisdiction under Article 226 could be exercised where the petitioner had failed to file its GST appeal within the statutory limitation period prescribed under Section 107 of the RGST/CGST Act, 2017.
The Court accepted the basic proposition that the Appellate Authority remains bound by the statutory limitation provisions. However, the Court distinguished the present matter on the basis of the circumstances responsible for the delay. According to the petitioner, the delay resulted from lack of timely communication by its Chartered Accountant and was therefore beyond the petitioner’s control.
The Court also attached importance to the consequence of refusing to entertain the appeal. It found that non-adjudication of the appeal on merits would cause grave injury and prejudice to the petitioner. The Court therefore followed the approach adopted by the Co-ordinate Bench in M/s Pratap Power Spares Vs. Union of India & Ors.
The judgment does not hold that statutory limitation under Section 107 can routinely be ignored. Rather, the order proceeds on the basis that extraordinary circumstances can justify exercise of writ jurisdiction where the taxpayer establishes circumstances beyond its control and denial of consideration on merits would result in grave prejudice.
The relief granted is also conditional. The Appellate Authority has been directed to consider the appeal on merits subject to the petitioner firm depositing late fees, penalty and other statutory deposits required for entertaining the appeal, as admissible.
The judgment therefore reinforces the distinction between an ordinary claim for condonation of delay before the statutory Appellate Authority and exceptional judicial intervention under Article 226. The Court’s reasoning is consistent with the line of Rajasthan High Court decisions referred to in the order concerning delayed GST appeals.
List of Cases Discussed / Relied Upon
- M/s Pratap Power Spares Vs. Union of India & Ors., D.B. Civil Writ Petition No. 9882/2024, decided on 28.07.2026. TaxGuru
- M/s M R Traders v. UOI, 2026 SCC OnLine RAJ 2115. TaxGuru
- M/s Molana Construction Company v. Central Goods and Service Tax Department & Ors., 2024 SCC OnLine Raj 3938. TaxGuru
- Man Singh Tanwar v. Commissioner, Central Goods and Services Tax Department & Ors., D.B. CWP No. 14658/2024. TaxGuru
- RPC PSIPL JV Vs. State of Rajasthan & Ors., D.B. CWP No. 7260/2025.
- RPC PSIPL JV Vs. State of Rajasthan & Ors., D.B. CWP No. 11794/2025.
- M/s Kakar Automobiles Vs. Union of India & Ors., D.B. Civil Writ Petition No. 13403/2026, decided on 13.07.2026.
- Sharwan Singh Devda Vs. The Union of India & Ors., D.B. Civil Writ Petition No. 15910/2026.
FULL TEXT OF THE JUDGMENT/ORDER OF RAJASTHAN HIGH COURT
1. The present writ petition has been preferred seeking the following reliefs:-
“It is therefore humbly prayed that the writ petition may kindly be allowed and by an appropriate order or direction:-
a) Order dated 09.12.2025 for FY 2021-22 (Annexure-4) along with all consequential actions, may be quashed & set-aside.
b) Issue an appropriate order or direction permitting the Petitioner to avail the statutory remedy of appeal notwithstanding the limitation prescribed under Section 107(4) of the CGST/RGST Act, or in the alternative, remand the matter back to the adjudicating authority for fresh adjudication after affording adequate and effective opportunity of hearing to the Petitioner;
2. Learned counsel for the petitioner submits that the present matter is squarely covered by the judgment rendered by this Hon’ble Court at Jaipur Bench in M/s. Pratap Power Spares Vs. Union of India & Ors. (D.B. Civil Writ Petition No.9882/2024), decided on 28.07.2026. The said order dated 28.07.2026 reads as under :-
“1. The petitioner herein, inter-alia, seeks a direction commanding respondents to condone the delay of 99 days infilling the appeal against the Order-in-Original dated 28.08.2023 (Annexure-4), passed by the Assistant Commissioner, State Tax, Ward-II, Circle -A, Jaipur, whereby GST demand of Rs.20,67,203/- for Financial Year 2018-2019, was raised on the account of availment of Input Tax Credit by the petitioner. The appeal against the said order was filed on 03.04.2024. However, the Appellate Authority vide order dated 08.04.2024 dismissed the appeal on the ground of limitation as it does not have the power to condone the delay in filing the appeal. Aggrieved by the same petitioner filed this instant writ petition on 31.05.2024.
2. Learned counsel for the petitioner submits that the delay in filing the appeal was neither deliberate nor intentional but was occasioned by compelling and unavoidable circumstances. He contends that the wife of the proprietor of the petitioner firm, Smt. Seema Shekhawat, had been suffering from severe Guillain-Barré Syndrome during the relevant period and was admitted to the ICU of Shalby Hospital in September 2023. She has continued to under go regular medical treatment thereafter. Owing to her critical medical condition and the consequent personal hardship, the proprietor was unable to effectively attend to the business affairs of the firm or pursue the statutory proceedings within the prescribed time.
2.1 Learned counsel for the petitioner further submits that on account of the aforesaid circumstances, the petitioner could not file a reply to the Show Cause Notice, whereupon the respondent Assistant Commissioner passed the impugned Order dated 28.08.2023, without affording the petitioner an effective opportunity of hearing.
3. In the aforesaid backdrop, we have heard the learned counsels for the parties and perused the record.
4. Learned Counsel for the petitioner, relying on the various Division Bench judgments of this very Court in M/s M R Traders v. UOI, M/s Molana Construction Company v. Central Goods and Service Tax Department & Ors, Man Singh Tanwar v. Commissioner, Central goods and Services Tax Department & Ors., RPC PSIPL JV Vs. State of Rajasthan & Ors and RPC PSIPL JV Vs. State of Rajasthan & Ors 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.
5. 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.
6. 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 wing 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.
7. In the judgments cited above, this Court, while allowing the writ petitions, have issued directions to entertain the appeal on merits.
8. 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 of 99 days (after granting relaxation of 120 days under Section 107 of CGST Act) in filing of the appeal by the petitioner.
9. 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.
10. Stay petition and all pending application also stand disposed of.”
3. Learned counsel for the petitioner has also referred to the judgment rendered by this Hon’ble Court in M/s. Kakar Automobiles VS. Union of India & Ors. (D.B. Civil Writ Petition No.13403/2026), decided on 13.07.2026.
4. Learned counsel for the respondent has referred to the judgment rendered by this Hon’ble Court in the case of Sharwan Singh Devda Vs. The Union of India & Ors. (D.B. Civil Writ Petition No.15910/2026); relevant para whereof reads as under :-
“28) No doubt, there is no absolute bar to invoke extraordinary jurisdiction in entertaining the writ petition under Article 226/227 of the Constitution of India merely because it has been filed after the expiry of the period prescribed for filing a statutory appeal but not as a matter of course. However, while exercising jurisdiction under Article 226 of the Constitution of India, this Court cannot disregard the statutory scheme of limitation and entertain such writ petitions and condone the delay and remand back the case to appellant authority to decide appeal on merits. The statutory period prescribed for availing the appellate remedy cannot be circumvented by invoking the extraordinary writ jurisdiction of this Court. It is true that in exceptional and extraordinary circumstances, this Court may interfere with the original order notwithstanding the expiry of the period of limitation for filing the statutory appeal, but not as a matter of course. However, interference can be justified only in exceptional circumstances such as where an order has been passed by completely disregarding the principles of natural justice or inherent lack of jurisdiction is clearly established. In the absence of such circumstances, a writ petition cannot ordinarily be entertained so as to defeat the legislative intendment. In the present case, no exceptional circumstance has been demonstrated warranting interference with the order passed by the Proper Officer.”
5. Learned counsel for the petitioner submits that all the judgments are in the same line and even the judgment in Sharwan Singh Devda (supra) provides a way out, inasmuch as the Hon’ble Court has noted that there is no absolute bar to invoke extraordinary jurisdiction under Article 226 of the Constitution of India merely because the writ petition has been filed after the expiry of the period prescribed for filing a statutory appeal, though not as a matter of course.
6. Learned counsel for the petitioner further submits that the Court has observed that in exceptional and extraordinary circumstances, the Court may interfere with the original order, notwithstanding the expiry of the period of limitation for filing the statutory appeal, but not as a matter of course. Learned counsel submits that the present case is not a matter of course, as the delay occurred on account of lack of communication on the part of the petitioner’s Chartered Accountant (CA), as duly explained in the petition.
7. This Court finds that while the Appellate Authority is bound by the statutory provisions of limitation under Section 107 of the RGST/CGST Act, 2017, however, considering the lack of timely communication on the part of the petitioner’s CA, which resulted in the petitioner not submitting the appeal within the stipulated time, being beyond his control, and also the fact that non-adjudication of the appeal on merits would cause grave injury and prejudice to the petitioner, the delay deserves to be condoned.
8. For the foregoing reasons and taking benefits of the order passed by the Co-ordinate Bench of this Court, we allow the present writ petition and accordingly, set aside the order dated 09.12.2025 (Annexure-4) passed by the Appellate Authority. The Appellate Authority is directed to consider and decide the appeal of the petitioner on its own merits, in accordance with law, subject to the petitioner firm depositing late fees, penalty and other statutory deposits for entertaining the appeal, as admissible.
9. Pending application(s), if any, shall stand disposed of.
