Appellate authority can condone GST appeal delays beyond prescribed periods considering pandemic and actual knowledge date

Gujarat HC held that appellate authority has power to condone delay in GST appeals beyond prescribed three or six month periods with additional one month extension. In case involving 5 months 22 days delay, court considered petitioner's knowledge date as 6.9.2022 when bank attachment occurred, rather than original assessment order date of 15.7.2021. Court emphasized pandemic period should be considered for condonation of delay and that proper officer must adhere to natural justice principles. Petition was allowed, recognizing delay deserved condonation based on actual knowledge date rather than original order date.

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Issues:
Challenge to order dated 28.9.2022 by Deputy State Tax Commissioner under GST Act; Delay in appealing; Condonation of delay; Compliance with procedural requirements; Violation of principles of natural justice.

Analysis:
1. The petition challenged the order dated 28.9.2022 by the Deputy State Tax Commissioner under the GST Act, seeking various reliefs, including a writ of Mandamus to quash the order, condonation of delay in appealing, and a stay on the implementation of the order.

2. The petitioner's return was scrutinized under Section 61 of the GST Act, leading to a demand notice of Rs. 72,92,765. The petitioner claimed unawareness of the proceedings and delay in responding to notices, resulting in an ex-parte assessment and subsequent appeal rejection due to being filed beyond the limitation period.

3. The Court noted the power of the appellate authority to condone delay in presenting appeals under the Act, allowing a further period of one month if sufficient cause is shown. The petitioner's delay of 5 months and 22 days was considered, citing relevant legal provisions.

4. Referring to a previous case, the Court emphasized adherence to procedural forms and principles of natural justice in tax matters. It highlighted the importance of fair hearing opportunities in appeal processes, citing relevant legal precedents.

5. Considering the impact of the COVID-19 pandemic on follow-up actions and awareness, the Court acknowledged the petitioner's circumstances of being unaware of the proceedings during the pandemic. It stressed the need for leniency in such cases and the importance of considering exceptional circumstances.

6. The Court ultimately allowed the petition, quashing the order dated 28.9.2022, and restoring the appeal for a fresh hearing on merits by the First Appellate authority. The decision was based on the petitioner's genuine reasons for delay and the need to address the issue of limitation in light of extraordinary circumstances.

7. The judgment highlighted the broader issue of addressing delays in appeals under the GST Act, especially in exceptional situations like the pandemic. It underscored the importance of balancing procedural requirements with considerations of fairness and justice in tax matters.

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