TaxTMI 
TaxTMI 
TaxTMI 
Both care as well as caution by small taxpayers are the requirements today on GST issues. Though there are several permissible modes for informing the taxpayers on the issues on GST like issuance of show cause notice, granting of personal hearing as well as passing of adjudication orders, the most popular and traditional methods of mail and post are deliberately avoided as the intention of the GST officials seems to be that the taxpayer must miss the noticing of the documents uploaded in GST portal which ultimately results in confirmation of demand as well as collection of taxes with interest as well as penalties.
The above observation is based on facts as well as the developments that are taking place at various jurisdictional high courts all over India. There are hundreds of orders passed by almost all High Courts in India which set aside adjudication orders as the opportunity of personal hearing was not granted. But this relief is possible only for taxpayers who approach the jurisdictional high courts under writ, which is not within the means of small taxpayers who depend on local accountants to file GST Returns.
The high court of Gujarat on 16/01/2026 came across one such case where the taxpayer lost his case due to limitation ground. It is highly unfortunate as even High Court could not help the taxpayer. The above order was passed by the division bench in the matter of M/s. Agrawal Enterprises Versus State of Gujarat & Ors. - 2026 (1) TMI 1146 - GUJARAT HIGH COURT. The facts of the case are very simple but the end of the case is not so.
For creating awareness amongst all small taxpayers, understanding the complete events that took place in the particular case is very important. The events are summarized below.
The taxpayer in this case is a small firm which solely depends on a local accountant to file the GST Returns. The accountant is conversant only with filing of the periodical returns and not even aware that Show Cause Notice could be uploaded in the portal. The firm was not aware of the show cause notice which was issued on 21/03/2024 raising a demand of GST of 1,98,720 and total demand of 5,03,768. The taxpayer noticed this development only on 30/03/2025 and immediately approached the jurisdictional authorities for remedy. The firm was advised to either pay full taxes or prefer an appeal by making necessary pre deposit. Accordingly, first appeal was filed.
As it is routine for GST officials to communicate with taxpayers through portal, this time also on 26/08/2025 intimation was posted on portal that the taxpayer may appear for personal hearing on 02/09/2025 or 06/09/2025 or 10/09/2025 for making required submissions. Despite the fact that no communication was sent by mail or post which are also permissible modes, the first appellate authority passed order rejecting the appeal on limitation ground on 30/09/2025. Left with no option, the taxpayer approached the jurisdictional high court by way of writ hoping for required relief.
The operative portion of the high court order reads as below:
22. In view of the settled legal precedents, this Court cannot exercise its jurisdiction under Article 226 of the Constitution of India condoning the delay. Thus, the writ petition fails and the same is dismissed.
The above is really a rare case as several other high courts have held that the High Courts have power under Article 226 for condoning delay in GST cases, as the provisions under GST Law nowhere refer to the Limitation Act due to which condonation of delay is possible for a higher court, where sufficient causes for the delay exists.
If at all a lesson is to be learnt from the above case, all small taxpayers must visit the portal on a fortnightly basis under notices as well as additional notices column and in case they find any documents uploaded, must act as quickly as possible and file replies, submissions as well as appeal, if required, well within the time limits as per GST Law.