M/S Jd Hotels vs. Union Of INDIA

Held

The High Court held that while the Appellate Authority is bound by statutory limitation periods under Section 107 of the RGST/CGST 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 its control. The Court respectfully agreed with the view expressed by the Punjab and Haryana High Court in Luxmi Traders, which held that service of a Show Cause Notice or an Order-in-Original solely by uploading on the Common Portal is not sufficient unless receipt is acknowledged or a reply is filed. The Court further held that if an appeal is dismissed on limitation grounds after the order-in-original was served only via portal upload, the appeal should be restored and heard on merits. The Court allowed the writ petition, condoning the delay in filing the appeal. The Appellate Authority was directed 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.

Facts

The petitioner, M/s JD Hotels, sought to quash an appellate order dated May 13, 2026, passed by the Additional Commissioner (Appeals-III), SGST, Rajasthan. This order rejected their appeal against an Order-in-Original dated September 11, 2025, solely on the grounds of limitation. The Order-in-Original, passed by the Assistant Commissioner, Central GST Circle-I, Jaipur, raised a GST demand of Rs. 1,57,74,800/- for the financial years April 2018 to March 2023, due to alleged wrongful availment of Input Tax Credit (ITC). The appeal was filed 104 days late. The petitioner's partner cited personal family medical emergencies for the delay. They also contended that the Show Cause Notice and Order-in-Original were only uploaded on the GST portal and not properly communicated, violating principles of natural justice. The petitioner's GST registration has since been cancelled.

Key Issues

1. Whether the delay of 104 days in filing the appeal before the Appellate Authority, caused by bona fide personal circumstances of the petitioner's partner, should be condoned under Section 107 of the CGST/RGST Act, 2017, to allow consideration of the appeal on merits? Petitioner's Arguments: The delay was due to unavoidable personal circumstances, specifically the partner attending to his seriously ill parents. The Show Cause Notice and Order-in-Original were not properly served, being only uploaded on the GST portal, and the appeal was filed promptly upon becoming aware of the order. The Appellate Authority erred in rejecting the appeal on limitation without considering the reasons for delay and the principles of natural justice, as per various Division Bench judgments of this Court and the Punjab and Haryana High Court in Luxmi Traders. Revenue's Arguments: The impugned order was rightly passed, and the appeal is barred by limitation as the Order-in-Original was duly served, and the petitioner failed to file the appeal within the prescribed time.