Facts of the Case

Abduklrazak, a contractor registered under GST, had preferred an appeal under Section 107 of the CGST/Karnataka GST Act, 2017 against an order passed by the Deputy Commissioner of Commercial Taxes (Audit-1) pursuant to a show cause notice dated 18.05.2024 and order dated 24.06.2024. The appeal was rejected by the Joint Commissioner of Commercial Taxes on the sole ground of inordinate delay beyond 120 days by order dated 24.06.2025, without assigning specific reasons for declining to condone the delay, prompting the petitioner to approach the High Court, Kalaburagi Bench.

Issues Involved

  1. Whether an appellate authority rejecting a GST appeal on the ground of delay beyond 120 days must record specific reasons for declining condonation.
  2. Whether the petitioner is entitled to parity with similarly situated taxpayers granted condonation in an earlier writ petition.

Petitioner's Arguments

  • Though there was delay beyond 120 days as prescribed in the statute, the appellate authority was required to assign appropriate reasons for refusing condonation, which was not done in the impugned order.
  • This Court, under similar circumstances in W.P.No.201028/2025 dated 04.04.2025 and several other matters, had directed the appellate authority to consider the appeal even where delay exceeded 120 days.

Respondent's Arguments

  • Learned Additional Government Advocate, upon instructions, fairly admitted the order in W.P.No.201028/2025 and other similar matters, and submitted that the present matter may also be remanded for consideration on merits.

Court Order / Findings

  • The Court found no reason why the petitioner, similarly situated to the petitioner in W.P.No.201028/2025, should be denied the same relief.
  • The impugned order dated 24.06.2025 rejecting the appeal was set aside, the delay condoned, and the matter remitted to the appellate authority to consider the case on merits and pass appropriate orders.
  • The petitioner was directed to appear before the appellate authority on 07.08.2025 without further notice.

Important Clarification

  • An order rejecting a GST appeal solely on the ground of delay beyond the 120-day limit under Section 107, without recording specific reasons for refusing condonation, is vulnerable to being set aside, particularly where the Court has already granted similarly situated taxpayers the benefit of condonation on comparable facts.
  • The principle of parity applies squarely in tax litigation where the facts and delay period are materially indistinguishable from an earlier decided matter.

Sections Involved

  • Section 107, CGST/Karnataka GST Act, 2017 — appeal to Appellate Authority and the outer limit for condonation of delay.

Decision – In Favour of

Assessee. Delay condoned and appeal remitted for consideration on merits.

Case Details

High Court of Karnataka, Kalaburagi Bench; Writ Petition No. 201936 of 2025 (T-RES); Neutral Citation: 2025:KHC-K:3873; Coram: Hon'ble Mr. Justice M.I. Arun; Order dated 14.07.2025.

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.