Facts of the Case

The petitioner's GST registration was cancelled by order of the 3rd respondent dated 11.03.2023. The petitioner's appeal under Section 107 of the CGST Act, 2017 was filed only on 13.07.2023 and was rejected by the 2nd respondent on 30.08.2023 (Appeal No.GUN-GST-000-APP-010-23-24) on the ground of delay beyond the condonable period. The statutory period for filing such an appeal is three months, extendable by a further one month on sufficient cause; after accounting for both periods, the delay in the present case was only two days.

Issues Involved

  1. Whether the appellate authority's rejection of the appeal for a two-day delay beyond the condonable period under Section 107 of the CGST Act was liable to be interfered with, given the reason for the delay.

Petitioner's Arguments

  • The delay beyond the condonable period was only two days, arising because the petitioner's Chartered Accountant had failed to inform him about the cancellation of registration in time to enable timely filing of the appeal.
  • Due to the cancellation of registration, the petitioner was unable to carry on his business, and the delay was not wanton but attributable to his accountant's lapse.

Respondent's Arguments

  • Learned Standing Counsel opposed the writ petition, though no substantive ground beyond the appellate authority's finding on limitation is recorded.

Court Order / Findings

  • Considering that the delay was only two days beyond the condonable period, and that it arose not from any wanton conduct of the petitioner but from his Chartered Accountant's failure to inform him about the cancellation in time, the Court deemed it apposite to condone the entire delay.
  • The writ petition was allowed, the delay in filing the appeal condoned, and the matter remitted to the 2nd respondent with a direction to admit the appeal if otherwise in order, and after hearing both parties, pass an appropriate order governing the law and rules within two weeks.
  • No costs were awarded.

Important Clarification

A short delay marginally exceeding the condonable period under Section 107 of the CGST Act — here just two days — attributable to a professional advisor's failure to communicate the cancellation order in time, rather than any fault of the assessee, is a paradigm case for condonation by a writ court, even though the appellate authority itself lacks the statutory power to condone delay beyond the one-month outer limit.

Sections Involved

  • Section 107, CGST Act, 2017 – prescribes a three-month period for filing an appeal against an order, extendable by a further one month on sufficient cause shown, with the appellate authority having no power to condone delay beyond that outer limit.

Decision – In Favour of

In favour of the Assessee — the delay was condoned by the writ court and the appeal directed to be heard on merits, though the outcome of the registration-cancellation appeal itself remains to be decided afresh.

Case Details

High Court of Andhra Pradesh; Writ Petition No.25840 of 2023; Coram: Hon'ble Sri Justice U. Durga Prasad Rao and Hon'ble Sri Justice A.V. Ravindra Babu; Order dated 07.10.2023; CNR not indicated on the order copy.

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.