Facts of the Case

M/s Gannon Dunkerley and Co Limited, registered under GSTIN 22AAACG1846P1ZJ, had filed its annual return for FY 2018-19 declaring turnover of Rs. 60,97,61,933 with GST of Rs. 8,46,61,792 duly paid. After a scrutiny notice in Form ASMT-10 and a show cause notice in Form DRC-01 under Section 73 of the Chhattisgarh GST Act, 2017 proposing a demand exceeding Rs. 18 crore, the Deputy Commissioner passed an ex-parte demand order dated 29.04.2024 imposing liability of Rs. 72,28,756 without affording any hearing. The petitioner's appeal under Section 107, accompanied by an application to condone a 26-day delay, was summarily rejected by the Appellate Authority on 19.06.2025 citing only 'delay in submission of appeal'. The High Court of Chhattisgarh at Bilaspur heard and decided the matter on 18.08.2025.

Issues Involved

  1. Whether the Appellate Authority could summarily reject a delayed appeal without examining whether the delay of 26 days fell within the condonable period under Section 107(4).
  2. Whether the original ex-parte demand order was itself passed in violation of Section 75(4) for want of a personal hearing.
  3. Whether the appellate rejection order satisfied the mandate of a reasoned, speaking order under Section 107(12).

Petitioner's Arguments

  • The ex-parte demand order was passed arbitrarily and without affording any opportunity of hearing, particularly since the show cause notice left the personal hearing date, time and venue columns marked 'NA'.
  • The delay of only 26 days in filing the appeal fell squarely within the further condonable period under Section 107(4), and sufficient cause had been shown, yet the Appellate Authority rejected the appeal summarily without examining this.
  • The impugned appellate order failed to satisfy Section 107(12), which mandates that an appellate order be reasoned, stating the points for determination and the reasons for the decision.

Respondent's Arguments

  • The State's counsel opposed condonation but fairly admitted that the show cause notice under Section 73 left the columns for date, time and venue of personal hearing marked 'NA', meaning no such details were actually furnished to the petitioner.

Court Order / Findings

  • The Court held that Section 75(4) mandates an opportunity of hearing before any adverse tax determination, and that the Appellate Authority is duty-bound to examine such compliance and pass a reasoned order under Section 107(12).
  • Finding no fault attributable to the petitioner and that the delay of 26 days was well within the condonable period under Section 107(4), the Court held the summary rejection unsustainable and condoned the delay, applying a liberal, justice-oriented approach to 'sufficient cause'.
  • The matter was remitted to the Appellate Authority to pass a fresh, speaking order after providing sufficient opportunity of hearing to the petitioner, in terms of Section 107(12).
  • The petition was disposed of with this direction.

Important Clarification

  • Where a GST appeal is filed within the further condonable period expressly carved out by Section 107(4), the Appellate Authority must examine the sufficient-cause explanation on merits rather than rejecting it in a slipshod, summary manner.
  • A show cause notice that leaves the personal hearing date, time and venue blank or marked 'NA' effectively denies the assessee a genuine opportunity of hearing under Section 75(4).
  • An appellate order rejecting a GST appeal must independently satisfy the reasoned-order requirement of Section 107(12), stating the points for determination and reasons for the decision.

Sections Involved

  • Section 73, CGST/Chhattisgarh GST Act, 2017 - determination of tax not paid or short paid for reasons other than fraud or suppression of facts.
  • Section 75(4), CGST/Chhattisgarh GST Act, 2017 - mandates an opportunity of hearing before an adverse tax determination.
  • Section 107(4) and 107(12), CGST/Chhattisgarh GST Act, 2017 - prescribe the condonable period for delayed appeals and the requirement of a reasoned appellate order.

Decision - In Favour of

Decided in favour of the assessee. The summary appellate rejection was set aside, the 26-day delay condoned, and the matter remitted for a fresh, reasoned decision after a proper hearing.

Case Details

Court: High Court of Chhattisgarh at Bilaspur
Case No.: WPT No. 116 of 2025
Neutral Citation: 2025:CGHC:41352
Coram: Hon'ble Shri Justice Deepak Kumar Tiwari
Date of Decision: 18.08.2025

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