New Kabady Shop vs. State Texes Department Th.Its Commissioner

Held

The Court held that while Section 107(4) of the GST Act prescribes a limit of one month for condoning delays, this statutory prohibition does not bar the High Court from exercising its extraordinary writ jurisdiction under Article 226 of the Constitution to render substantial justice. The Court noted that the prohibition in the statute is a strong consideration but does not extinguish the High Court's power if it believes that strict adherence would lead to gross injustice. In this case, the delay was only one day, and the petitioner provided a justifiable reason (death of a sister). Therefore, the Court found that not hearing the appeal on merits would be harsh. The Court allowed the petition, set aside the impugned order of the Appellate Authority, condoned the one-day delay in filing the appeal, and remanded the matter to the Appellate Authority for a fresh consideration and decision on merits.

Facts

The petitioner, New Kabady Shop, challenged an order dated June 24, 2025, passed by the Appellate Authority, Sales Tax Department, Kashmir Division, Srinagar. This order rejected the petitioner's appeal, filed online on June 6, 2025, against a Demand Order dated February 5, 2025, issued by the Assessing Authority, Circle, Budgam, Kashmir. The rejection was based on the appeal being filed beyond the prescribed limitation period under the Goods and Services Tax (GST) Act. The petitioner had filed the appeal one day after the expiry of the maximum period allowed for filing, including the condonable delay. The petitioner cited the death of a sister as the reason for the delay.

Key Issues

1. Whether the Appellate Authority has the jurisdiction to condone a delay in filing an appeal beyond the one-month period stipulated in Section 107(4) of the GST Act, when such condonation is necessary to render substantial justice? Petitioner's Argument: The petitioner contended that the delay in filing the appeal was minimal (one day) and caused by a personal tragedy (death of a sister). They relied on previous judgments of this Court in "M/s Multi Trading Agencies, Drangbal Vs. UT of Jammu and Kashmir & Ors" and "M/s Parshotam Electronics vs. State Taxes Officer, Circle-Q, Jammu," which held that Constitutional Courts can exercise extraordinary jurisdiction to condone delays beyond statutory limits to prevent gross injustice. Revenue's Argument: The judgment does not record any specific arguments made by the respondent (State Taxes Department).