M/S. Kamalaveni Petroleum Agency vs. The State Tax Officer

Facts

The petitioner, M/s. Kamalaveni Petroleum Agency, filed a writ petition challenging an assessment order dated 25.02.2025 passed by the State Tax Officer and a subsequent rejection order dated 17.07.2025 passed by the Deputy Commissioner (CT). The assessment order pertained to the financial year 2020-21. The petitioner's appeal against the assessment order was rejected by the Deputy Commissioner due to a delay of 60 days beyond the condonable period. The petitioner contended that they were unaware of the assessment order as it was only uploaded to the GST portal and not served directly. The petitioner had already paid 10% of the disputed tax as a pre-deposit and was willing to pay an additional 5%. The respondents, represented by the Additional Government Pleader, agreed to condone the delay subject to terms.

Held

The Court held that the reason provided by the petitioner for the delay in filing the appeal, namely their unawareness of the assessment order due to its upload only on the GST portal, appeared to be genuine. Consequently, the Court was inclined to condone the delay of 60 days in filing the appeal against the impugned assessment order. The Court set aside the appeal rejection order dated 17.07.2025 passed by the Deputy Commissioner (CT). As a condition for condoning the delay and re-presenting the appeal, the petitioner was directed to pay an additional 5% of the disputed tax amount to the respondents, as agreed by the petitioner. Upon such payment, the Appellate Authority (2nd respondent) was directed to accept the re-presented appeal, pass appropriate orders on merits and in accordance with law, and provide sufficient opportunity to the petitioner. The Court expressly left no issue undecided.

Key Issues

1. Whether the delay of 60 days in filing the appeal against the assessment order dated 25.02.2025, passed under Section 73 of the CGST Act, should be condoned, considering the petitioner's claim of being unaware of the order due to its upload only on the GST portal? (Question of mixed law and fact, turning on the interpretation of procedural fairness and the provisions related to service of orders and condonation of delay). Petitioner's arguments: The petitioner argued that the delay was caused because the assessment order was only uploaded to the GST portal and not served directly, leading to their unawareness of the order and inability to file the appeal within the prescribed time. They highlighted that they had already made the statutory pre-deposit of 10% and were willing to pay an additional 5% of the disputed tax amount to have the delay condoned. Revenue's arguments: The learned Additional Government Pleader for the respondents stated that the delay may be condoned subject to terms and requested the Court to pass appropriate orders.