Appellate Authority Has No Power to Condone Delay Beyond One Month Under GST Act
By Author | May 17, 2025 | GST Judgments
Overview
The Hon’ble Rajasthan High Court, in Akshansh Consultancy Services (P.) Ltd. v. Deputy Commissioner [D.B. Civil Writ Petition No. 2957 of 2024, dated April 01, 2025], dismissed a writ petition filed beyond the statutory appeal period under the CGST Act. The court ruled that the Appellate Authority lacks power to condone delay after the expiry of one month beyond the prescribed limitation.
Background of the Case
Akshansh Consultancy Services (P.) Ltd., the petitioner, received assessment orders alleging incorrect tax filings. According to the petitioner, delays in filing GSTR-1 and GSTR-3B for March and April 2023 occurred due to medical issues. They filed a rectification application, followed by an appeal under Section 107 of the CGST Act.
However, the appeal was filed on October 26, 2023, well beyond the time limits set under the CGST Act. The Appellate Authority dismissed the appeal as time-barred.
Legal Issue
Can the Appellate Authority condone delay beyond one month after the prescribed appeal period under the CGST Act?
Court’s Ruling
The Rajasthan High Court answered in the negative, stating:
- The petition failed to mention any formal request for condonation of delay.
- Under Section 107(4) of the CGST Act, the Appellate Authority cannot condone any delay beyond one additional month after the standard appeal period.
- Therefore, the Appellate Authority rightly rejected the appeal as time-barred.
Supporting Precedents
- Assistant Commissioner (CT) LTU v. Glaxo Smith Kline Consumer Health Care Ltd.
The Supreme Court held that writ petitions under Article 226 cannot override statutory appeal limitations. - Thekedar Girraj Prasad Garg v. State of Rajasthan
The Rajasthan High Court held that if an assessee waits beyond the permissible limitation and condonation periods, a writ petition is not maintainable.
Key Takeaways from the Judgment
- The petitioner did not argue that the assessment orders were passed without jurisdiction or violated natural justice.
- No legal or procedural irregularities were found in the original assessment orders.
- Consequently, the High Court dismissed the writ petition in limine (at the preliminary stage).
Commentary
Appeal Timelines under CGST Act – A Recap
Section 107 of the CGST Act outlines the process for filing appeals:
- Section 107(1): Appeals must be filed within three months of the order’s communication.
- Section 107(2): The Commissioner may direct a subordinate officer to file an appeal within six months, if needed.
- Section 107(4): An Appellate Authority may grant a maximum one-month extension, if justified by sufficient cause.
Thus, the maximum allowable delay in most cases is four months.
Contrasting View – A Notable Exception
In Molana Construction Company v. State of Rajasthan [D.B. Civil Writ Petition No. 12076 OF 2024], the Rajasthan High Court took a different approach. Despite the lapse in limitation:
- The Court exercised powers under Article 226 of the Constitution.
- It restored the appeal, subject to payment of penalty and statutory dues.
- The decision was based on equity and justice, not just legal technicalities.
Conclusion
This case reaffirms that Appellate Authorities under the CGST Act have no discretionary power to condone delay beyond one month past the statutory deadline. Assessees must remain vigilant in adhering to appeal timelines to avoid procedural dismissals. While High Courts may intervene in exceptional cases, such relief is not guaranteed and remains discretionary.
