Facts of the Case

The petitioner, a civil contractor carrying on business under GST registration No. 29BDDPP8286N1ZJ, was subjected to proceedings under Section 73 of the Karnataka GST Act for FY 2020-21, culminating in an order dated 11.02.2025 demanding Rs. 52,69,810 towards tax, interest and penalty. The petitioner's appeal under Section 107 of the CGST Act before the Joint Commissioner of Commercial Taxes (Appeals) was dismissed by order dated 06.09.2025 on the ground that it was filed beyond the 120-day limitation period, with a delay of 29 days.

Issues Involved

  1. Whether the Appellate Authority was justified in rejecting the appeal solely on the technical ground of a 29-day delay in filing, without addressing the merits.
  2. Whether the absence of a constituted GST Appellate Tribunal justified the petitioner's recourse to writ jurisdiction.

Petitioner's Arguments

  • The rejection of the appeal purely on the technicality of limitation caused serious prejudice to the petitioner.
  • Though a further appeal is provided under Section 108 of the CGST Act, no Appellate Tribunal has been constituted, leaving approach to the High Court as the only viable option.
  • Relying on the coordinate Bench decision in Sri T.V. Basavaraju v. Superintendent of Central Tax (W.P.No.21725/2024), where, under similar circumstances, the delay was condoned and the matter remitted for fresh consideration on merits.

Respondent's Arguments

  • The learned Additional Advocate General did not dispute that the Court had, in similar circumstances, allowed the writ petition and remitted the matter for fresh consideration on merits, but insisted that any such liberty be conditioned upon the petitioner complying with the statutory requirement of pre-deposit.

Court Order / Findings

  • Following the ratio in T.V. Basavaraju, the Court found no reason to deny similar relief to the petitioner.
  • The impugned rejection order was set aside, and the matter was remitted to the Appellate Authority to proceed further on merits.
  • The petitioner was directed to comply with the other statutory requirements for prosecuting the appeal, including the mandatory statutory pre-deposit, with the appeal to be heard only thereafter.

Important Clarification

  • Where a statutory Appellate Tribunal under the GST law remains unconstituted, High Courts have shown willingness to exercise writ jurisdiction to correct a hyper-technical rejection of an appeal on limitation grounds, provided the assessee is still made to comply with the mandatory pre-deposit before the appeal is heard on merits.
  • A short delay of a few weeks in filing a GST appeal is routinely condoned by courts where a coordinate-bench precedent on similar facts already exists, without requiring elaborate justification for the delay.

Sections Involved

  • Section 73, KGST Act, 2017 – provision under which the original demand was raised.
  • Section 107, CGST Act, 2017 – governs the limitation period and pre-deposit requirement for filing a first appeal.
  • Section 108, CGST Act, 2017 – provides for a further appeal to the Appellate Tribunal, non-constitution of which was cited as a ground for approaching the High Court.

Decision – In Favour of

The petition is allowed in favour of the Assessee. The rejection of the appeal on limitation grounds is set aside and the matter is remitted for consideration on merits, subject to compliance with statutory pre-deposit.

Case Details

  • Court: High Court of Karnataka, Kalaburagi Bench
  • Case No.: Writ Petition No. 203785 of 2025 (T-RES)
  • Neutral Citation: NC: 2025:KHC-K:7386
  • Coram: Hon'ble Mr. Justice M.G.S. Kamal
  • Date of Order: 02.12.2025

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