2025 (7) TMI 1397 - HC - GST

Condonation of delay in filing an appeal - Seeking to quash the FORM GST APL 02 dated 23.06.2025 issued by the 1st respondent and direct the 1st respondent to take the appeal filed by the petitioner - mismatch in the taxable outward supply based on a comparison between the taxable turnover furnished in Form GSTR-3B and Form GSTR-1 - input mismatch upon verification of inward supply between Form GSTR-3B and Form GSTR-2A - difference in the generation of e-way bill - delay in filing Form GSTR-3B returns - HELD THAT - As far as this case is concerned as against the Adjudication Order dated 07.01.2025 passed by the 2nd respondent the petitioner preferred an appeal dated 16.06.2025 under Section 107 of the TNGST Act before the 1st respondent. The petitioner filed the said appeal with a delay of 70 days i.e. 40 days beyond the condonable period since the managing partner of the petitioner firm was undergoing medical treatment and also the petitioner came to know about the Adjudication Order only after receiving a call from the respondent-Department. The reasons stated by the petitioner for belated filing of appeal appears to be genuine. The delay of 70 days in filing the appeal dated 16.06.2025 before the 1st Respondent is condoned and the appeal is restored on the file of 1st Respondent on condition that the petitioner pays a sum of Rs. 10, 000/- to the Principal Government Naturopathy Medical College and Hospital Chennai bearing Account No.7883022723 IFSC Code IDIB000M157 within a period of two weeks from the date of receipt of a copy of this order. Petition disposed off.

Summary

ISSUES:

Whether delay in filing an appeal under Section 107 of the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act) can be condoned.Whether the appellate authority is obligated to take on record and adjudicate an appeal that was initially rejected due to delay in submission.Whether imposition of penalty and interest under the TNGST Act can be challenged on grounds of procedural irregularity in appeal filing.

RULINGS / HOLDINGS:

The Court held that the delay of 70 days in filing the appeal was condoned on the ground that the managing partner was undergoing medical treatment and the petitioner became aware of the adjudication order only after a departmental call; these reasons were deemed "genuine."The appellate authority was directed to restore the appeal on condition of payment of Rs. 10,000/- to a specified government medical institution and to proceed with adjudication "on merits and in accordance with law."The Court confirmed that the appellate authority's rejection of the appeal solely on the ground of delay without considering the reasons was not justified, thus mandating reconsideration upon condonation of delay.

RATIONALE:

The Court applied the provisions of Section 107 of the TNGST Act concerning appeals against adjudication orders and the principle that delay in filing appeals may be condoned for sufficient cause.The Court recognized medical incapacity and lack of knowledge of the order as valid grounds for delay, aligning with established jurisprudence permitting condonation of delay for "genuine" reasons.The condition of payment to a government medical institution as a prerequisite for condonation represents a discretionary measure by the Court to balance equity and public interest.No dissent or doctrinal shift was indicated; the decision follows standard principles of appellate procedure under tax statutes.