M/S Bholey Traders vs. Deputy Commissioner

Held

The High Court held that the Appellate Authority erred in rejecting the appeal solely on the grounds of delay. While the Appellate Authority correctly noted Section 107(4) of the Act, it failed to condone the delay despite the petitioner's explanation. The Court found that the petitioner's explanation, that the impugned order and show cause notice were not brought to their attention despite being on the Chartered Accountant's email linked to the portal, was a valid ground for condonation. Exercising its powers under Article 226 of the Constitution, the Court set aside the order of dismissal, condoned the delay, and directed the Appellate Authority to hear the appeal on its merits within four months. A speaking order was to be passed after affording an opportunity of hearing to both parties. The Court expressly left undecided any issues pertaining to the merits of the underlying GST proceedings.

Facts

The petitioner, M/s Bholey Traders, filed a writ petition challenging an order dated 18.02.2025 passed by the Additional Commissioner (Appeals), State Goods and Service Tax Department, Alwar. The appeal was rejected solely on the grounds of delay. The petitioner contended that the show cause notice and impugned order were placed on the common portal, linked to the email address of their Chartered Accountant. However, the petitioner claimed to be unaware of these proceedings under Section 73 of the Rajasthan Goods and Services Tax Act, 2017, as the information on the portal escaped their attention. The Appellate Authority refused to condone the delay, and the petitioner sought relief from the High Court.

Key Issues

1. Whether the Appellate Authority erred in rejecting the appeal on grounds of delay, despite the petitioner's explanation for the delay in filing, 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 appeals to be filed within three months, and delays up to one month can be condoned by the Appellate Authority. They submitted that they provided reasons for the delay, explaining that while the show cause notice and impugned order were accessible via their Chartered Accountant's email linked to the common portal, the petitioner remained unaware of the proceedings under Section 73. The petitioner relied on the fact that the Appellate Authority had noted the provision of Section 107(4) but failed to condone the delay. Respondents' Arguments: The respondents objected, arguing that the petitioner ought to have been more vigilant. They contended that the petitioner should have maintained contact with their Chartered Accountant regarding ongoing proceedings and proactively sought out any orders or notices available on the Chartered Accountant's email.