GST Appeal Prevails: Procedural Delay Excused, Pre-Deposit Mandated, Merit-Based Hearing Ordered Within 30 Days

HC allowed petitioner's appeal challenging GST assessment order, condoning 58-day delay in filing statutory appeal. Court directed petitioner to pre-deposit required amount and instructed Appellate Commissioner to hear appeal on merits within 30 days. Business decline and staff turnover were accepted as reasonable grounds for delay, enabling procedural relief.

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Issues involved: Challenge to Assessment order, Delay in filing appeal, Condonation of delay.

Challenge to Assessment order: The petitioner challenged the Assessment order dated 23.02.2023, which was based on discrepancies between GSTR 1, GSTR 3B, and GSTR 2A. The petitioner failed to respond to the notice issued in GST DRC 01 on 19.12.2022, leading to the passing of the impugned order.

Delay in filing appeal: The period for filing an appeal expired on 22.05.2023, with a grace period until 22.06.2023. The petitioner did not file a Statutory Appeal before the Appellate Commissioner under Section 107 of the GST Act within the statutory timeline. The writ petition was filed on 21.08.2023, with a delay of 58 days.

Condonation of delay: The petitioner provided a reasonable explanation for the delay in filing the appeal. The business was in decline, key staff had left, and new employees did not regularly check the GST portal for notices. The petitioner only became aware of the demand against them upon manual receipt of a recovery notice. The delay in filing the appeal was condoned, and the petitioner was directed to file a Statutory Appeal within 30 days.

Decision: The Court disposed of the writ petition, directing the petitioner to pre-deposit the required amount under Section 107 of the GST Act before the appeal is heard by the Appellate Commissioner. The Appellate Commissioner was instructed to hear the appeal on its merits in due course. No costs were awarded, and connected writ miscellaneous petitions were closed.

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