2026 (2) TMI 1204 - HC - GST

Condonation of Delay permitted; appeal to be admitted on payment of additional pre-deposit and decided on merits.

A 150-day delay in filing a statutory appeal arising from an assessment order was treated as a bona fide procedural lapse attributable to the taxpayer's ... Condonation of delay in filing appeal - Setting aside rejection of appeal on ground of limitation - Pre-deposit as condition for admission of appeal - Direction to represent appeal and adjudicate on merits after opportunity - HELD THAT:- According to the petitioner, due to the failure on the part of the petitioner's Accountant, he remained unaware of the said order and hence, there was a delay of 150 days in filing the appeal. The above reason assigned by the petitioner, for the delay in filing the appeal against the assessment order, appears to be genuine. Thus, this Court is inclined to condone the delay, in filing the appeal against the impugned assessment order. Therefore, though the petitioner had already paid 10% of the disputed tax amount as statutory pre-deposit while filing the appeal, considering the delay, this Court directs the petitioner to pay additional 10% of the disputed tax amount to the respondents, as agreed by the petitioner. Accordingly, the appeal rejection order dated 16.10.2025 passed by the 1st respondent is set aside and the delay of 150 days in filing the appeal is hereby condoned, subject to the payment of additional 10% of the disputed tax amount by the petitioner to the respondents. Issues: Whether the delay of 150 days in filing the statutory appeal against the assessment order should be condoned and the appeal rejection order set aside subject to payment of an additional pre-deposit.Analysis: The assessment order was communicated and the appeal was filed with a delay of 150 days beyond the condonable period. The reason given for the delay is failure on the part of the petitioner's accountant, and a rectification application filed earlier was rejected before the expiry of limitation. The petitioner had already paid 10% of the disputed tax as statutory pre-deposit at the time of filing the appeal and agreed to pay an additional 10% of the disputed tax. The respondents did not oppose condonation provided appropriate terms are imposed. On these facts, the delay is a bona fide procedural lapse attributable to the agent and not an attempt to circumvent limitation; conditional relief on payment of additional pre-deposit is acceptable in the fiscal appellate context.Conclusion: The delay of 150 days in filing the appeal is condoned and the appeal rejection order dated 16.10.2025 is set aside, subject to payment of an additional 10% of the disputed tax by the petitioner; upon such payment the appellate authority is to admit the appeal and decide it on merits after giving opportunity to the petitioner.