Condonation of delay in GST appellate proceedings granted where bona fide ITC mismatch and supplier non uploading justified merits hearing.

Condonation of delay in filing statutory CGST appeals was granted after a justice oriented application of limitation rules. The court found the petitioner had a bona fide belief that an Input Tax Credit mismatch would be corrected by the supplier, issued a legal notice, and suffered delay from lack of professional assistance and limited procedural awareness; these facts evidenced bona fides and justified relief. The court relied on GST Council circulars to require the appellate authority to consider the appeal on merits. Writ petition allowed and delay condoned so appeal may proceed to merits consideration.

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Issues: Whether the delay in preferring the appeal under Section 107(1) of the Central Goods and Services Tax Act, 2017 should be condoned so that the appeal can be considered on merits.

Analysis: The petitioner explained delay by stating that Input Tax Credit was claimed on a genuine invoice but the supplier failed to upload the invoice leading to mismatch and rejection of ITC; a legal notice was issued to the supplier; the petitioner acted under bona fide belief that the supplier would rectify the discrepancy; and there was limited awareness and absence of professional assistance. The appellate authority dismissed the appeal as time-barred under the limitation scheme of Section 107(1) of the Central Goods and Services Tax Act, 2017 which prescribes a mandatory period with a condonable extension of 30 days. The Court examined the explanation for delay in light of the GST Council circulars (Circular No. 183/15/2022-GST dated 27.12.2022 and Circular No. 193/05/2023-GST dated 17.07.2023) and the principles that permit condonation where the explanation is bona fide and justice requires consideration on merits.

Conclusion: The delay in filing the appeal is condoned; the impugned order dismissing the appeal as time-barred is set aside; the appeal shall be treated as filed within time; and the appellate authority is directed to consider the appeal on merits in accordance with law and the cited GST Council circulars.

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