Partner’s Illness Valid Ground for Condoning Delay in GST Appeal
Issue
Whether the Appellate Authority should condone a marginal delay in filing an appeal under Section 107 of the GST Act when the delay was caused by the genuine illness of a partner in the assessee-firm.
Facts
The Order: An order was passed against the assessee-firm under Section 73 (Determination of tax not paid/short paid).
The Delay: The assessee filed an appeal against this order after the expiry of the statutory limitation period.
Reason for Delay: The assessee submitted that one of the partners was indisposed (ill) during the relevant period. The other partner, being the wife of the ailing partner, was presumably occupied with his care and could not file the appeal either.
Appellate Authority’s Action: The authority noted the ground of illness and the medical documents annexed but still rejected the appeal solely on the ground of limitation. Crucially, the authority did not disbelieve the genuineness of the illness/documents.
Decision
Sufficient Cause: The Court held that if one partner was unwell and the other (his wife) was unable to act due to this situation, it cannot be said that the petitioners were “grossly negligent” in pursuing their legal remedy.
Marginal Delay: The Court emphasized that since the delay was marginal and the reason was genuine (medical grounds), a liberal approach should be taken to advance substantial justice.
Verdict: The Appellate Authority’s order dismissing the appeal was set aside. The delay was condoned, and the appeal was restored to the file of the Appellate Authority to be heard on merits. [In favour of assessee]
Key Takeaways
Medical Grounds are Strong: Illness of the taxpayer or key authorized personnel is widely accepted by Courts as a “sufficient cause” for condonation of delay, provided it is supported by medical records.
Authority’s Duty: If an Appellate Authority accepts the evidence of illness (i.e., does not prove it fake), they are generally expected to condone the delay rather than dismissing the appeal on technicalities.
Spousal Partnership: In family-run firms (e.g., Husband & Wife partners), courts often recognize that the illness of one spouse naturally impacts the ability of the other to attend to business/legal matters.