M/S Balaji Cork vs. Union Of INDIA

Facts

The petitioner, M/s Balaji Cork, sought to quash an order dated 28.10.2025 by the Commissioner (Appeals), Jaipur, which rejected their appeal against an Order-in-Original dated 30.01.2023. The Order-in-Original, passed by the Central Goods Service Tax Range, Bhiwadi, raised a GST demand of Rs. 31,96,080/- for the Financial Year 2021-2022. The appeal was dismissed by the Commissioner (Appeals) solely on grounds of limitation, as the authority lacked the power to condone delay. The petitioner filed the appeal on 28.06.2023, after learning about the Order-in-Original through a phone call on 22.06.2023/23.06.2023, as the order was uploaded on the GST portal under "Additional Notices and Orders" and not manually served. The petitioner contends the Order-in-Original was passed in violation of natural justice, as no personal hearing or show cause notice was received.

Held

The Court held that while the Appellate Authority is bound by the statutory limitation period under Section 107 of the CGST/RGST Act, 2017, non-adjudication of the appeal on merits would cause grave injury and prejudice to the petitioner, considering the reasons for the delay were beyond their control. The Court agreed with the reasoning in the cited judgments, including the Punjab and Haryana High Court's view that service of a Show Cause Notice (SCN) or order solely by uploading it on the portal without acknowledgment or reply is insufficient. The Court found that the delay of 29 days in filing the appeal before the appellate authority, after considering a relaxation of 120 days under Section 107, was condoned. The Court directed the Appellate Authority 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 operative direction is to condone the delay and direct the Appellate Authority to decide the appeal on merits.

Key Issues

1. Whether the Appellate Authority, under Section 107 of the CGST/RGST Act, 2017, has the power to condone the delay in filing an appeal when the delay is attributable to circumstances beyond the petitioner's control, specifically non-receipt of the Order-in-Original and lack of opportunity for personal hearing? Petitioner's arguments: The petitioner argued that the delay in filing the appeal was unintentional and due to circumstances beyond their control, including non-receipt of the Order-in-Original due to its improper upload on the GST portal and lack of manual service. They also contended that the Order-in-Original was passed in violation of Section 75(4) of the CGST/RGST Act, 2017, and principles of natural justice due to the absence of a personal hearing. They relied on several Division Bench judgments of the Rajasthan High Court and a Punjab and Haryana High Court judgment to support their plea for condonation of delay and adjudication on merits. Respondents' arguments: The respondents contended that the Order-in-Original was rightly passed and that the appeal was barred by limitation. They asserted that the Order-in-Original was not only uploaded on the GST portal but also sent via registered speed post to the petitioner's declared address.