2025 (3) TMI 1388 - HC - GST

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 ... Dismissal of appeal on the ground of delay of 285 days in filing appeal - sufficient cause for delay or not - HELD THAT:- Considering the fact that the notices were uploaded in the portal, but no hard copy was served on the petitioner, this Court feels that reasonable cause has been shown by the petitioner for the delay. Therefore, this Court is inclined to condone the delay of 285 days in filing the appeal. The delay of 285 days in filing the appeal before the first respondent is condoned and the order of the appellate authority/first respondent is set aside - Petition allowed. 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.