Bona fide pursuit of rectification proceedings can justify condonation of delay in a tax appeal and permit rehearing on merits.

Delay in filing an appeal under the CGST/KGST Act, 2017 was treated as condonable where the appellant had first pursued rectification proceedings in bona fide belief that it was an appropriate alternative remedy. The court accepted that the period spent in those proceedings could be considered for limitation purposes because the appeal was filed within four months of rejection of the rectification request and no prejudice was shown to bar merits consideration. The order rejecting the appeal was set aside, the delay was condoned, and the appeal was directed to be taken on record and decided afresh on merits.

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Issues: Whether the delay in filing the appeal against the adjudication order should be condoned by treating the time spent in pursuing rectification proceedings as bona fide prosecution of an alternative remedy, and whether the appeal should be reheard on merits.

Analysis: The appeal was filed beyond the ordinary period prescribed under Section 107 of the CGST/KGST Act, 2017, but the record showed that the petitioner had first pursued rectification proceedings, which were rejected only later. The filing of the appeal was found to be within four months from the rejection of the rectification request. The time spent in the rectification proceedings was accepted as having been spent under a bona fide belief before a wrong forum, and no prejudice was shown to defeat consideration on merits.

Conclusion: The delay was condoned, the order rejecting the appeal was set aside, and the appeal was directed to be taken on record and decided afresh on merits.

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