Wholesale Painting Business Wins Appeal Reinstatement Due to Delay in Notice; Court Finds "Reasonable Cause" Under Section 5

In the case before the Madras HC, a wholesale painting business contested two orders: a demand order dated February 8, 2023, and the dismissal of an appeal on April 25, 2024, due to a 285-day delay. The court found "reasonable cause" for the delay, noting that notices were only uploaded online without a hard copy. The court condoned the delay, set aside the dismissal, and directed the first respondent to consider the appeal on its merits, ensuring the petitioner is heard. No costs were ordered, and related petitions were closed.

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Writ petition challenges order of demand dated 08-02-2023 and appellate order dated 25-04-2024 rejecting the petitioner's delayed appeal. Petitioner operates a wholesale business, had been regular in filing monthly returns, but missed a show cause notice dated 19-12-2022 due to "ambiguity in the procedure adopted after the GST enactment" and learned of the demand only after coercive recovery steps. Appeal was filed 285 days late and dismissed for delay. Respondent conceded that if sufficient and reasonable cause is shown, appropriate relief may follow. Court noted notices were uploaded on the portal but no hard copy was served, and found that the petitioner had shown "reasonable cause" for the delay. The Court therefore decided to "condone the delay of 285 days in filing the appeal", set aside the appellate authority's order, and directed the appellate authority to take up the appeal "as if it is filed in time" and dispose of it on merits after affording an opportunity of hearing. No order as to costs.

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