2025 (5) TMI 1351 - HC - GST

Rejection of an appeal on grounds of a 37-day delay - Show Cause Notice alleging discrepancy between GSTR-3B and GSTR-7 - delay resulted from efforts to remit tax through the Block Development Officer (BDO) - HELD THAT - Considering the fact the delay of 37 days has been satisfactorily explained this Court is of the view that the order of the 1st respondent warrants interference by this Court. Accordingly the impugned order dated of the first respondent dated 15.04.2025 is set aside and a direction is issued to the 1st respondent to entertain the petitioner s appeal without reference to the delay and pass appropriate orders on merits and in accordance with law as expeditiously as possible. The Writ Petition is disposed of to the extent indicated above.

Summary

The Madras High Court, through Justice N. Mala, addressed a Writ Petition challenging the rejection of an appeal by the 1st respondent on grounds of a 37-day delay and the subsequent assessment order by the 2nd respondent for the assessment year 2022-2023. The petitioner, a proprietary concern engaged in government civil works, received a Show Cause Notice alleging discrepancies between GSTR-3B and GSTR-7 returns. Despite the petitioner's explanation of a calculation error and request to drop proceedings, the 2nd respondent passed the assessment order without considering objections.The petitioner's appeal was rejected by the 1st respondent due to delay. The petitioner explained the delay resulted from efforts to remit tax through the Block Development Officer (BDO), who disputed the applicable tax rate. The Court found this explanation satisfactory, stating that "a liberal view ought to have been taken by the Appellate Authority."The Court held that the impugned order rejecting the appeal for delay "warrants interference," set aside the 1st respondent's order dated 15.04.2025, and directed the appellate authority to entertain the appeal "without reference to the delay" and decide on merits "in accordance with law as expeditiously as possible." The Writ Petition was disposed accordingly with no costs.