HC allows 70-day delay in TNGST Act appeal due to medical reasons, restoring appeal with Rs. 10,000 payment condition

The HC condoned a 70-day delay in filing an appeal against an adjudication order under the TNGST Act, accepting the petitioner's medical treatment and late knowledge of the order as valid reasons. The appeal was restored on condition that the petitioner pays Rs. 10,000 to a specified government medical institution within two weeks. The petition was disposed accordingly.

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ISSUES:

Whether delay in filing an appeal under Section 107 of the Tamil Nadu Goods and Services Tax Act, 2017 (TNGST Act) can be condoned.Whether the appellate authority is obligated to take on record and adjudicate an appeal that was initially rejected due to delay in submission.Whether imposition of penalty and interest under the TNGST Act can be challenged on grounds of procedural irregularity in appeal filing.

RULINGS / HOLDINGS:

The Court held that the delay of 70 days in filing the appeal was condoned on the ground that the managing partner was undergoing medical treatment and the petitioner became aware of the adjudication order only after a departmental call; these reasons were deemed "genuine."The appellate authority was directed to restore the appeal on condition of payment of Rs. 10,000/- to a specified government medical institution and to proceed with adjudication "on merits and in accordance with law."The Court confirmed that the appellate authority's rejection of the appeal solely on the ground of delay without considering the reasons was not justified, thus mandating reconsideration upon condonation of delay.

RATIONALE:

The Court applied the provisions of Section 107 of the TNGST Act concerning appeals against adjudication orders and the principle that delay in filing appeals may be condoned for sufficient cause.The Court recognized medical incapacity and lack of knowledge of the order as valid grounds for delay, aligning with established jurisprudence permitting condonation of delay for "genuine" reasons.The condition of payment to a government medical institution as a prerequisite for condonation represents a discretionary measure by the Court to balance equity and public interest.No dissent or doctrinal shift was indicated; the decision follows standard principles of appellate procedure under tax statutes.

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