Facts of the Case

  • The petitioners were registered dealers under GST whose registrations were cancelled or demands were raised by adjudicating authorities.
  • They filed appeals before the Appellate Authority under Section 107 of the CGST Act.
  • These appeals were dismissed as time-barred since they were filed beyond:
    • 3 months (statutory period), and
    • additional 1 month (condonable period).
  • Due to absence of GST Appellate Tribunal, petitioners approached the High Court invoking writ jurisdiction.
  • Petitioners cited various reasons for delay such as COVID-19 disruptions, lack of knowledge, clerical errors, consultant negligence, and procedural irregularities. 

Issues Involved

  1. Whether the Appellate Authority under Section 107(4) CGST Act can condone delay beyond the additional one-month period.
  2. Whether the High Court under Article 226 can direct condonation of delay beyond the statutory limit prescribed under Section 107.

Petitioner’s Arguments

  • Delay occurred due to genuine and unavoidable circumstances (COVID-19, lack of communication, consultant errors).
  • Show Cause Notices (SCNs) were vague, defective, or not properly served.
  • Cancellation orders were passed without considering replies or in violation of natural justice.
  • Retrospective cancellation of GST registration is arbitrary and impacts past transactions and third parties.
  • Relied on judicial precedents where GST registrations were restored in the interest of justice.
  • Sought liberal interpretation of limitation provisions to prevent miscarriage of justice. 

Respondent’s Arguments

  • Appeals were filed beyond the statutory limitation period prescribed under Section 107.
  • The Appellate Authority has no power to condone delay beyond the prescribed additional one month.
  • Petitioners failed to exercise alternative remedies such as revocation of cancellation.
  • Statutory timelines must be strictly adhered to in fiscal statutes.
  • Relied on Supreme Court judgments emphasizing strict limitation compliance.

Court’s Findings / Order

  • Section 107 of the CGST Act is a complete code governing limitation for appeals.
  • The Appellate Authority:
    • Can condone delay only up to one additional month,
    • Has no power beyond that period.
  • The Limitation Act, 1963 does not apply to extend timelines under CGST Act.
  • High Court under Article 226:
    • Cannot override statutory limitation,
    • Cannot grant relief contrary to legislative intent.
  • Supreme Court precedents confirm that delay beyond prescribed condonable period is absolute and non-extendable.
  • Consequently, writ petitions seeking extension of limitation were dismissed.

Important Clarification by Court

  • GST law being a special statute, excludes application of general limitation principles.
  • Even constitutional powers cannot be exercised to defeat clear statutory limitation provisions.
  • Equity, hardship, or procedural lapses cannot override express legislative mandate.
  • The phrase “but not thereafter” in limitation provisions signifies complete bar on further condonation.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/61007022025CW142792024_153651.pdf

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