Facts of the Case

The petitioner's GST registration had been cancelled by the third respondent by order dated 11th March 2023. The petitioner filed a statutory appeal against the cancellation under Section 107 of the Central Goods and Services Tax (CGST) Act, 2017, but the appeal was filed only on 13th July 2023 — beyond the three-month limitation period plus the further one-month condonable period prescribed by the statute, resulting in a delay of two days beyond the outer condonable limit. The second respondent, the Appellate Authority, rejected the appeal by order dated 30th August 2023 (Appeal No.GUN-GST-000-APP-010-23-24) on the ground of delay. Aggrieved, the petitioner approached the High Court for the State of Andhra Pradesh, Amaravati, in Writ Petition No.25840 of 2023, which was heard and decided by a Division Bench on 7th October 2023.

Issues Involved

  1. Whether the two-day delay beyond the condonable period under Section 107 of the CGST Act could be condoned given the reasons offered.
  2. Whether the appeal against cancellation of GST registration ought to be restored and heard on merits.

Petitioner's Arguments

  • The delay beyond the condonable period was only two days, since the cancellation order was passed on 11.03.2023 and the appeal was filed on 13.07.2023, against a total permissible period (three months plus one month condonable) under Section 107 of the CGST Act.
  • The Chartered Accountant engaged by the petitioner had failed to inform the petitioner about the cancellation in time, causing the marginal delay, and the delay was neither wanton nor deliberate.
  • Due to the cancellation, the petitioner was unable to carry on business, and the short delay ought to be condoned in the interest of justice.

Respondent's Arguments

  • The learned Standing Counsel for the Revenue opposed the writ petition, supporting the Appellate Authority's rejection of the appeal on the ground of delay.

Court Order/Findings

  • The Court noted that the delay in filing the appeal was only two days beyond the condonable period and was attributable to the petitioner's Chartered Accountant not informing him of the cancellation in time, rather than any wanton default by the petitioner.
  • The Court held that it deemed it apposite to condone the entire delay in filing the appeal, having regard to the marginal nature of the delay and the bona fide explanation offered.
  • The writ petition was allowed, the delay in filing the appeal was condoned, and the matter was remitted to the Appellate Authority with a direction to admit the appeal, if otherwise in order, and pass appropriate orders after hearing both parties within two weeks.
  • No costs were awarded, and pending miscellaneous applications, if any, were closed.

Important Clarification

A short, marginal delay in filing a Section 107 CGST Act appeal beyond the statutorily condonable period — particularly one caused by a professional's lapse rather than the assessee's own default, and where the consequence is loss of GST registration and business — can still be condoned by the High Court in writ jurisdiction where the explanation is bona fide and the delay minimal. Courts have generally distinguished such marginal, explainable delays from cases involving prolonged or unexplained inaction, recognising that outright refusal to condone a mere two-day delay would disproportionately and permanently deprive a taxpayer of its GST registration and livelihood.

Sections Involved

  • Section 107 of the Central Goods and Services Tax Act, 2017 — limitation for filing appeals.
  • Provisions governing cancellation of GST registration under the CGST Act, 2017.
  • Article 226 of the Constitution of India.

Decision – In Favour of

The decision is clearly in favour of the Assessee. The two-day delay beyond the condonable period was condoned on account of the bona fide explanation, the cancellation-appeal was ordered to be restored, and the Appellate Authority was directed to decide it on merits within a fixed timeframe of two weeks, without imposing any costs on the petitioner.

Related Case Laws

No directly on-point case notes are currently published on this site.

Case Details

  • Court: High Court for the State of Andhra Pradesh, Amaravati
  • Case No.: Writ Petition No.25840 of 2023
  • CNR: Not available
  • Coram: Justice U. Durga Prasad Rao and Justice A V Ravindra Babu
  • Decision Date: 07-10-2023
  • Disposal Nature: Allowed; delay in filing appeal against GST registration cancellation condoned

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