2026 (2) TMI 460 - HC - GST

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 ... Condonation of delay in filing statutory appeals - limitation under the CGST appellate regime and its condonable period - justice-oriented approach to condonation of delay - bona fide belief arising from supplier non-uploading and ITC mismatch - application of GST Council Circulars for consideration of appeals on merits - HELD THAT:- The petitioner had acted under bona fide believe that the mismatch in the Input Tax Credit would be rectified by the supplier, that a legal notice was issued to the supplier, and that the delay was occasioned due to lack of professional assistance and limited awareness of procedural requirements. The explanation, in the present facts, cannot be said to be lacking bona fides. No doubt Section 107(1) of the CGST Act, 2017 prescribes the period within an appeal to be filed. However, adopting a justice oriented approach, particularly when the justification offered is reasonable and when the matter deserves consideration on merits, in the peculiar facts and circumstance of this case the delay in preferring the appeal deserves to be condoned and the matter requires consideration on merits by the appellate authority having regard to the circler issued by the GST council, namely No. 183/15/2022-GST dated 27.12.2022 and Circular bearing No. No. 193/05/2023-GST dated 17.07.2023. Writ petition is allowed. 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.