Facts of the Case

The petitioner, M/s Sundaram Alloys Limited (GSTIN 37AAMCS5216K3ZW), a manufacturer of Ferro Alloys utilising inputs for export transactions, applied for refund of accumulated input tax credit under Section 54 of the CGST Act read with Rule 89 for the period 01.04.2020 to 31.03.2021. The refund claim was rejected on 11.08.2023, and the petitioner's statutory appeal, filed with a delay of 39 days attributed to the authorised signatory's serious ill health (supported by a medical certificate), was rejected by the Additional Commissioner on 26.06.2024 without independently examining the medical evidence, since Section 107(4) bars condonation beyond the condonable period.

Issues Involved

  1. Whether the Appellate Authority under Section 107 could refuse to independently examine medically-supported reasons for a short delay of 39 days in filing an appeal, given the statutory bar on condonation under Section 107(4).
  2. Whether a writ court, in exercise of its extraordinary jurisdiction, can condone such delay to preserve the assessee's valuable right of appeal.

Petitioner's Arguments

  • The 39-day delay was fully explained by the authorised signatory's serious ill health, supported by a medical certificate, and the Appellate Authority ought to have appreciated this given that appeal is a valuable statutory right; the petitioner also pointed out that appeals for later refund periods (April 2021-March 2023) had in fact been allowed by the same Appellate Authority.
  • Relied on Shaik Abdul Azeez v. State of Andhra Pradesh (2024) 15 Centax 321 (A.P.) to argue the orders should be set aside.

Respondent's Arguments

  • The Appellate Authority had no discretion to condone delay beyond the statutorily prescribed period under Section 107, and its order was well-reasoned; the petitioner in any event had a further remedy of appeal before the Tribunal under Section 112(1) of the CGST Act.

Court Order / Findings

  • The Court found that though the Appellate Authority noted the reasons for delay, it undertook no independent examination of the medical certificate, treating the delay as barred purely under Section 107(4) without weighing the sufficiency of cause shown.
  • Relying on its own precedent in Mastek Engineering (P) Ltd. v. Appellate Authority and Additional Commissioner, State Tax, where a 73-day delay was condoned (on cost) as 'appeal is a valuable statutory right', the Court held the interest of justice required condonation of the short 39-day delay here too.
  • The Court set aside the appellate order dated 26.06.2024 and directed the Appellate Authority to take up and decide the appeal on merits after affording due opportunity to the petitioner.

Important Clarification

  • Even where Section 107(4) of the CGST Act bars the Appellate Authority from condoning delay beyond the statutorily prescribed condonable period, writ courts have condoned genuine, medically-supported short delays in the interest of justice, treating the statutory right of appeal as too valuable to be extinguished by a technical time bar.
  • Where the same Appellate Authority has allowed comparable appeals (e.g., refund claims for other tax periods of the same assessee) on similar facts, this consistency is a relevant factor supporting condonation for the disputed period as well.

Sections Involved

  • Section 54, CGST Act, 2017 read with Rule 89, CGST Rules, 2017 – refund of unutilised input tax credit on account of exports.
  • Section 107, CGST Act, 2017 – statutory appeal and the limitation/condonation regime under sub-section (4).
  • Section 112(1), CGST Act, 2017 – further appellate remedy before the Appellate Tribunal.

Decision – In Favour of

The decision is in favour of the assessee. The appellate rejection was set aside, the 39-day delay effectively condoned, and the matter remanded for a decision on merits.

Case Details

Court: High Court of Andhra Pradesh, Amaravati — Case No.: Writ Petition No. 27562 of 2024 — Coram: Justice Ninala Jayasurya and Justice T.C.D. Sekhar — Date of Order: 8 July 2026.

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