High Court Grants Relief in Tax Dispute, Allows Delayed Appeal After Compelling Medical Evidence and Partial Tax Deposit

HC allowed a writ petition challenging a GST tax demand, permitting the petitioner to file a delayed appeal due to documented health issues. The court granted appeal filing within one week, contingent on depositing 20% of the disputed tax amount. No costs were imposed, and the decision was made considering the substantial tax liability and medical evidence presented.

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Issues involved:
The issues involved in the judgment are the legality of an order passed by respondent No. 4, the delay in preferring an appeal under Section 107 of the C.G.S.T Act, 2017, due to health reasons, and the request to condone the delay.

Judgment Details:

Issue 1: Legality of Order by Respondent No. 4
The petitioner, a private limited company providing Works Contract Service, received letters from the revenue regarding discrepancies in GST payments for the period from July 2017 to March 2020. After explaining the reasons for the mismatch, respondent No. 4 issued a show cause notice proposing a tax demand of Rs. 1,33,19,137/- along with interest and penalty. The petitioner filed a detailed reply, leading to the impugned Order.

Issue 2: Delay in Preferring Appeal
The petitioner, citing health issues including diabetes and pneumonia, was unable to file an appeal within the prescribed period of three months under Section 107 of the C.G.S.T Act, 2017. The web portal did not allow the appeal after the stipulated period, resulting in a delay of 65 days. The petitioner sought the Court's indulgence to condone the delay, emphasizing the substantial tax amount involved and the merits of their case.

Issue 3: Court's Decision
The Court noted that the petitioner did not challenge the correctness of the impugned Order but sought relief to condone the delay in preferring the appeal due to health reasons. Under Section 107 of the Act, the appeal had to be filed within three months, extendable by one month for sufficient cause. Considering the petitioner's health issues, supported by medical prescriptions, and the significant tax amount at stake, the Court decided to allow the Writ Petition. The petitioner was granted permission to file an appeal within one week, subject to depositing 20% of the disputed tax.

Conclusion
The Court allowed the Writ Petition, with no order as to costs, and directed any pending miscellaneous petitions to stand closed.

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