Condonation In Filing Appeal- Remedy In Case of Delay
The Goods and Services Tax regime in India provides a comprehensive framework for the adjudication and appeal of disputes under the Central Goods and Services Tax Act, 2017.
Like other taxation laws, GST mandates strict compliance with timelines for filing appeals. However, recognizing the practical difficulties faced by taxpayers, the Act allows limited relief in cases where appeals are filed late, through the mechanism of condonation of delay.
Relevant Provisions – GST Appeals
Section 107(1) — Any person aggrieved by any decision or order passed under this Act or The State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an Adjudicating authority may Appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.
The wording used above is “within three months” From the date on which the said decision or order is communicated to such person. So, the limitation period will start from the date when the order was communicated to the person.
Section 107(4)— The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the Appeal within the aforesaid period of three months, allow it to be presented within a further period of one month.
It means, the appellant must file an application for condonation of delay along with the appeal within 30 days after expiry of above 3 months.
Total maximum time allowed— In view of above, the total time available for filing the Appeal, including Condonation, is 4 months from the date of communication of the order.
If the appeal is rejected as time-barred, the appellant may approach Hon’ble High Court under Article 226 of the Constitution.
Scope and limitation of Condonation—
The discretion to condone delay lies exclusively with the Appellate Authority, but it is strictly limited to 30 days beyond the initial period of 3 months.
Grounds for seeking condonation
The application for condonation must demonstrate “sufficient cause” which is not defined in the Act but interpreted in line with judicial precedents.
Valid reasons may include—
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Serious illness of the appellant
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Delay in obtaining certified copies of the order
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Natural Calamities
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Administrative or procedural errors
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Legal misadvise
If the appeal is not filed within this total period of 120 days, the authority has no power to admit the appeal regardless of reason for delay.
In such cases, the only remedy lies in approaching the High Court under Article 226 of the Constitution of India by way of a writ petition. Courts may exercise their extraordinary jurisdiction in rare and exceptional cases, especially when:
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The delay was due to factors beyond the taxpayer’s control
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There has been a gross miscarriage of justice
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The taxpayer was denied an opportunity to be heard
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There is no alternate remedy available
Judicial pronouncement where High Courts restored Appeal beyond the period prescribed under Section 107 (4) of the Act.
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In case of White Mountain Trading Pvt. Ltd V/s Additional Commissioner [2024] 69 TAXLOK.COM 211 (Delhi), according to Delhi High Court as the Commissioner Appeals has erroneously not considered the application seeking Condonation of delay solely on the ground that appeal same was beyond the period prescribed under Section 107 (4) of the Act and thus beyond the powers vested in the Commissioner Appeals, it set aside the said order and remit the matter to the Commissioner Appeals to consider the application seeking Condonation of delay in accordance with law.
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CALCUTTA HIGH COURT in case of Gour Mohan Bera V/s The State of West Bengal [2024] 72 TAXLOK.COM 072 (Calcutta), ought to have properly considered the application for Condonation of delay as there is no bar for considering the application under Section 5 of the Limitation Act. The delay in filing the appeal under Section 107 of the said Act should be and is accordingly condoned. The appellate authority shall hear out and dispose of the said appeal preferably within a period of 6 weeks from the date of communication of this order upon giving an opportunity of hearing to the petitioner.
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PUNJAB AND HARYANA HIGH COURT in case of Vasudeva Engineering V/s The Union of India [2024] 77 TAXLOK.COM 120 (P&H), addressed 17 writ petitions challenging the rejection of appeals under Section 107 of the Haryana Goods and Services Tax Act, 2017 due to delayed filing beyond the permissible limit. The Court invoked Article 226 to condone the delay, allowing appeals to proceed based on merit, emphasizing that rigid timelines under GST law should not preclude access to remedies, especially when pre-deposit requirements have been met.
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RAJASTHAN HIGH COURT in case of V.R. India Trader V/s State of Rajasthan [2024] 78 TAXLOK.COM 052 (Rajasthan) quashed the Appellate Authority's order dismissing an appeal as time-barred, holding that limitation under Section 107 of the CGST Act, 2017, begins from the date of communication of the order, not its issuance. The court noted the absence of findings on communication and the denial of an opportunity to be heard. It remitted the matter back to the Appellate Authority for reconsideration with a direction to provide a hearing.
The GST appellate framework strikes a balance between administrative discipline and the taxpayer’s right to seek redressal. While condonation of delay provides a crucial lifeline in genuine cases, the strict outer limit of 120 days under Section 107 reflects the law’s emphasis on timely compliance.
Taxpayers must remain vigilant about limitation periods and, in case of delay, promptly file for condonation with a well-supported explanation. Beyond the statutory window, writ jurisdiction of High Courts remains a narrow but viable avenue for relief, contingent on compelling circumstances. |