2025 (4) TMI 731 - HC - GST

Legal Challenge Succeeds: CGST Appeal Reinstated with Directive for Fair Reconsideration and Timely Reasoned Order

Reliance Securities Limited Versus The Commissioner (Appeals) -II of CGST & Central Excise, Mumbai & Ors.

The Bombay HC allowed the petitioner's challenge to an appeal dismissal under CGST Act. The court found the alleged delay reasonable, set aside previous ... Time limitation - dismissal of appeal on the ground that the same was instituted beyond three months from the date of communication of the order as required under Section 107 (1) of the CGST Act, 2017 - HELD THAT:- Respondent No. 1 disregarded the evidence of the date of communication of the order produced before him by the Petitioner in the form of speed-post tracking slip, postal stamp on the envelope and a specific affidavit filed. At the same time, Respondent No. 1 did not have any contrary evidence to doubt correctness of the evidence produced by the Petitioner. The Application seeking rectification of his order was also dismissed by the Respondent No. 1 by his order dated 24th October 2024. No contrary evidence is produced by Respondent No. 1 to doubt the correctness of the claim of the Petitioner about the date of communication of the Order-in-Original dated 24th April 2023 being 29th April 2023. The difference in the date of the Order-in- Original and the date of receipt as claimed by the Petitioner is reasonable. Even otherwise, under Section 107 (4) of the CGST Act, 2017, Appeal can be filed within the extended period of one month and in the present case, the alleged delay, if any, is only of 4 days. The Impugned Order dated 18th April 2024 along with Rectification Order dated 24th October 2024 set aside - the Petitioner’s appeal restored to the file of Respondent No. 1 for consideration on merits. Appeal disposed off. This petition challenged an order dismissing the petitioner's appeal as time-barred under Section 107(1) of the CGST Act, 2017. The court found that Respondent No.1 disregarded the petitioner's evidence of communication (speed-post tracking slip, postal stamp, affidavit) and had no contrary proof. The court noted that under Section 107(4) an appeal may be filed within the extended period of one month and that 'the alleged delay, if any, is only of 4 days.' Respondent No.2 subsequently verified receipt as 29th April 2023. The Impugned Order dated 18th April 2024 and the Rectification Order dated 24th October 2024 were set aside and the petitioner's appeal was restored for consideration on merits, with all contentions left open. Respondent No.1 is directed to grant hearing, pass a reasoned order and dispose the appeal 'as expeditiously as possible, and in any event, on or before 30th June 2025.' 'Rule is made absolute in the above terms and the Writ Petition is also disposed of in terms thereof.' No order as to costs.