M/S Friends Cards vs. Deputy/Joint Commissioner

Held

The Court held that the Appellate Authority failed to apply its mind to the facts presented. While the Appellate Authority noted the provision of Section 107(4) of the Act and the death of the petitioner's accountant, it did not adequately consider that the impugned order was posted on the portal and the email address of the deceased accountant was utilized. This omission indicated a non-application of mind to a critical aspect of the delay. Consequently, the appellate order rejecting the appeal on grounds of delay could not be sustained and was set aside. The Court directed that the appeal be heard on its merits within four months from the date of the order, with a speaking order to be passed after affording an opportunity of hearing to both parties. The issue of the merits of the appeal itself was expressly left undecided.

Facts

The petitioner, M/s Friends Cards, assails an order dated 17.03.2025 passed by the Deputy/Joint Commissioner, Circle-A, Jaipur-II, which rejected their appeal on the grounds of delay. The petitioner's counsel argued that the appeal was filed late because the accountant responsible for downloading orders from the common portal had passed away. A death certificate was submitted to the Appellate Authority. The respondents contended that the petitioner should have been more proactive in searching for the orders, possibly via email, even after the accountant's death. The High Court noted that the Appellate Authority acknowledged the accountant's death on 25.04.2021 and the order's passing on 30.03.2024 but failed to consider that the order was posted on the portal and the accountant's email address was used.

Key Issues

1. Whether the Appellate Authority erred in rejecting the appeal solely on the ground of delay, despite the petitioner providing a reason for the delay (death of the accountant) and submitting a death certificate, thereby failing to properly consider the condonation of delay under Section 107(4) of the Rajasthan Goods and Services Tax Act, 2017? Petitioner's Arguments: The petitioner argued that Section 107(4) of the Act permits filing an appeal within three months and allows condonation of delay up to one month by the Appellate Authority. They contended that the death of their accountant, who was responsible for downloading orders, was a valid reason for the delay, and the Appellate Authority failed to apply its mind to this crucial fact when refusing to condone the delay. They relied on the fact that the death certificate was presented. Respondents' Arguments: The respondents argued that the petitioner should have exercised greater diligence. They suggested that even after the accountant's demise, the petitioner ought to have actively sought out the orders, potentially through email, demonstrating a lack of vigilance on the petitioner's part.