Delhi High Court Restores Time-Barred GST Appeal on Payment of Costs

M/s Param Infrawell Private Limited challenged the cancellation of its GST registration, upheld in appeal by order, which affirmed the original cancellation order. The cancellation arose from a show cause notice alleging non-furnishing of returns under Section 39 of the CGST Act. The petitioner did not file a reply or attend the personal hearing, resulting in retrospective cancellation of registration with effect from 02.07.2017.

The petitioner’s statutory appeal was dismissed as time-barred. Before the Delhi High Court, the petitioner contended that the appellate authority relied on grounds not mentioned in the show cause notice and that the matter had never been examined on merits.

Issue Before HC: Whether a delayed appeal dismissed on limitation ought to be restored where the petitioner’s contentions were never adjudicated on merits.

HC’s Order: The Delhi High Court noted the substantial delay in filing the appeal but held that, since the petitioner’s contentions were not examined even at the adjudication stage, the appeal deserved consideration on merits. Relying on the Supreme Court’s directions extending time to pursue statutory remedies in similar cases, the Court restored the appeal to its original number before the Appellate Authority, subject to payment of costs of Rs. 25,000 to the Delhi High Court Legal Services Committee.

The petitioner was permitted to file additional documents, along with proof of payment of costs, by 31.01.2026. The Appellate Authority was directed to grant a personal hearing and thereafter decide the appeal on merits by a reasoned order in accordance with law.

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