HC Allows Delayed GST Appeal; Exceptional Hardship Justifies Condonation

The petitioner, M/s Ramdev Builders, challenged GST demand orders for FY 2017–18, 2018–19, and 2019–20, where substantial tax liability was raised on account of alleged excess Input Tax Credit (ITC) availed. The petitioner could not file appeals within the prescribed limitation period under Section 107 of the CGST/RGST Act, 2017, due to a series of tragic personal events. It was submitted that between 2019 and early 2025, the family suffered five consecutive bereavements, including the death of the managing partner and close family members.

These events led to severe emotional and financial disruption, making it practically impossible to pursue legal remedies or arrange pre-deposit for filing appeals. As the appellate portal reflected the appeal as time-barred, the petitioner approached the High Court seeking condonation of delay and a direction to entertain the appeal.

Central Issue: Whether delay in filing GST appeal beyond the statutory limitation period under Section 107 can be condoned by the High Court in exercise of writ jurisdiction due to exceptional and unavoidable circumstances.

HC Held:

The Rajasthan High Court allowed the writ petition and condoned the delay in filing the appeal. The Court observed that although the Appellate Authority is strictly bound by the limitation prescribed under Section 107, the facts of the case disclosed genuine hardship beyond the control of the petitioner. Taking note of continuous family tragedies and the resulting mental and financial distress, the Court held that denying an opportunity to contest the matter on merits would cause serious prejudice.

Following its consistent view in similar cases, the Court directed the Appellate Authority to entertain the appeal and decide it on merits. The Court also recorded that the challenge to the vires of Section 107(4) was not pressed and kept the issue open for future adjudication.

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