M/S Gujarat Co-Operative Milk Marketing Federation Limited vs. The Joint Commissioner, Commerical Taxes Department

Held

The Court held that while the Appellate Authority is bound by the statutory provisions of limitation under Section 107 of the RGST/CGST Act, 2017, considering the reasons for the delay, which were beyond the petitioner's control, non-adjudication of the appeal on merits would cause grave injury and prejudice to the petitioner. Following consistent views of the Court in cited judgments, the High Court allowed the writ petition. The Court condoned the delay of 114 days in filing the appeal, noting that this was after granting a relaxation of 120 days under Section 107 of the CGST Act. The Appellate Authority was directed to entertain the petitioner's appeal and adjudicate it on merits, provided the appeal is filed within 30 days of the instant order being uploaded on the Court's website. The ratio decidendi is that where a delay in filing an appeal is demonstrably beyond the appellant's control and due to non-communication of the order, the High Court can direct the Appellate Authority to condone the delay and decide the appeal on merits, following established precedent.

Facts

The petitioner, M/s Gujarat Co-Operative Milk Marketing Federation Limited, filed a writ petition challenging the order dated 18.03.2025 passed by the Appellate Authority-I (State Tax). The Appellate Authority dismissed the petitioner's appeal against an Order-in-Original dated 26.06.2024, passed by the Joint Commissioner (State Tax), on grounds of limitation. The Order-in-Original had raised a GST demand of Rs. 4,65,20,796.00 for Financial Year 2022-23 due to alleged wrongful availment of Input Tax Credit. The appeal was filed on 15.02.2025, with a delay of 114 days. The petitioner contended that the delay was bona fide and caused by non-communication of the Order-in-Original, which they only became aware of on 05.02.2025. The writ petition was filed on 02.05.2025.

Key Issues

1. Whether the delay of 114 days in filing the appeal against the Order-in-Original dated 26.06.2024, passed by the Joint Commissioner (State Tax), should be condoned by the Appellate Authority-I (State Tax) under Section 107 of the CGST Act, 2017, considering the petitioner's submission that the delay was bona fide and due to non-communication of the order. Petitioner's arguments: The delay was bona fide and not intentional. The petitioner was unaware that the impugned order was available on the GST portal, and mere uploading does not constitute effective communication as per Section 107 of the CGST Act, 2017. The delay was caused by circumstances beyond their control, specifically the non-communication of the order, which came to their knowledge only on 05.02.2025. They acted with due diligence thereafter. They relied on several Division Bench judgments of the High Court, including M/s M R Traders v. UOI, M/s Molana Construction Company v. Central Goods and Service Tax Department & Ors, Man Singh Tanwar v. Commissioner, Central goods and Services Tax Department & Ors., RPC PSIPL JV Vs. State of Rajasthan & Ors, and RPC PSIPL JV Vs. State of Rajasthan & Ors. Respondents' arguments: The respondents contended that the impugned order was rightly passed and the appeal is barred by limitation.