Facts of the Case

The petitioner, M/S Prudential Properties, a GST-registered partnership firm, was issued a show cause notice dated 22.12.2023 for FY 2018-19 proposing a demand of GST on electricity, HVAC, and DG charges along with interest for delayed filing of returns/GSTR-3B. An ex-parte order dated 30.03.2024 confirmed the demand without a hearing. A rectification application filed on 19.03.2025 was rejected as beyond the 90-day period on 26.03.2025. A prior writ petition (WP No.201601/2025) was disposed of, relegating the petitioner to the appellate remedy under Section 107 of the CGST/SGST Act; the resulting appeal was itself rejected on 06.08.2025 as barred by limitation (368 days, or 290 days after excluding the writ-petition period).

Issues Involved

  1. Whether the approximately 290-day delay (after excluding the earlier writ petition's pendency) in filing the appeal against the ex-parte assessment order should be condoned.
  2. Whether the appellate authority ought to adjudicate the appeal on merits once the delay is condoned.

Petitioner's Arguments

  • The ex-parte adjudication order came to the petitioner's knowledge only when its bank account was attached for GST recovery; the petitioner promptly sought rectification, and on its rejection, filed the appeal.
  • The appellate authority ought to have considered the date of knowledge while computing delay, which, if properly calculated, would reduce the delay to about 290 days.
  • Reliance was placed on five coordinate bench rulings of the same High Court (W.P.Nos. 200898/2025, 200569/2025, 200155/2025, 200975/2025, and 201028/2025) condoning delay in similar circumstances.

Respondent's Arguments

  • The learned AGA for the respondents did not dispute that, under similar facts and circumstances, coordinate benches of the same Court had condoned the delay and remitted such matters for consideration on merits.

Court Order / Findings

  • Since the respondents did not dispute that similarly-placed petitioners in the five cited coordinate bench matters had been granted condonation of delay and remand for merits adjudication, the Court found no reason to deny the same benefit to the petitioner, who was similarly situated.
  • The order dated 06.08.2025 rejecting the appeal on limitation grounds was set aside, and the delay of 290 days in preferring the appeal was condoned.
  • The matter was remitted to the Appellate Authority, directed to proceed to adjudicate the appeal on its merits, without adverting to the issue of limitation, after affording sufficient opportunities to the parties.

Important Clarification

  • Where an ex-parte GST assessment order comes to an assessee's knowledge only upon coercive recovery action (such as bank attachment), courts may compute limitation from the date of actual knowledge rather than the date of the order itself.
  • Once a High Court has, in a series of parity cases, condoned similar delays in filing GST appeals against ex-parte orders, subsequent identical petitions are typically disposed of on the same basis without a fresh merits inquiry into the delay itself.

Sections Involved

  • Section 107, CGST/SGST Act, 2017 — statutory appeal and the limitation period for filing it.
  • Section 73, CGST Act, 2017 — determination of tax, under which the original ex-parte order was passed.

Decision – In Favour of

Assessee (partly allowed). Delay in filing the appeal was condoned and the matter remitted for adjudication purely on merits.

Case Details

Court: High Court of Karnataka, Kalaburagi Bench
Case No.: Writ Petition No. 202518 of 2025 (T-RES)
Neutral Citation: NC: 2025:KHC-K:6532
Coram: Hon'ble Mr. Justice M.G.S. Kamal
Date of Order: 04.11.2025

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