Sufficient cause for GST appeal delay accepted, as statutory changes and portal issues justified condonation and remand on merits.

The Gujarat HC treated the 25-day delay in filing the statutory GST appeal as sufficiently explained, noting that the appeal was lodged within the further condonable period under Section 107(4) of the CGST Act. The Court accepted that overlapping statutory changes, including the waiver scheme under Section 128A, related input tax credit amendments, procedural uncertainty, and non-availability of prescribed portal forms had prevented timely filing. It held that the explanation constituted sufficient cause for condonation, making rejection of the appeal as time-barred unsustainable. The matter was therefore required to be remanded to the appellate authority for fresh decision on merits.

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Issues: Whether the petitioner had shown sufficient cause for condonation of the 25-day delay in filing the statutory appeal under Section 107(4) of the Central Goods and Services Tax Act, 2017, and whether the appeal rejected as time-barred ought to be restored for decision on merits.

Analysis: The appeal was filed within the further condonable period beyond the initial ninety days. The delay was explained by the petitioner on the basis of overlapping statutory changes, including the introduction of the waiver scheme under Section 128A and related amendments concerning input tax credit, together with procedural uncertainty and portal-related non-availability of the prescribed forms. The discretion under Section 107(4) is to be exercised on satisfaction that the appellant was prevented by sufficient cause from filing the appeal within time. On the facts placed before the Court, the explanation was treated as properly accounted for and sufficient cause was found to exist.

Conclusion: The rejection of the appeal on limitation was unsustainable, and the matter was required to be remanded to the appellate authority for fresh decision on merits.

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