Appellate Authority Directed to Entertain Appeal Beyond Limitation Period as Order Upload Caused Delay

By | September 18, 2026
0 Comment
Appellate Authority Directed to Entertain Appeal Beyond Limitation Period as Order Upload Caused Delay
Issue
Whether an appeal filed before the Appellate Authority under Section 107 beyond the statutory limitation period can be directed to be entertained on merits, where the Order-in-Original was passed ex-parte without an effective hearing and only uploaded on the GST portal without direct notification.
Facts
  • A Show Cause Notice (SCN) was issued to the petitioner for FY 2021-22 alleging discrepancies between utilized input tax credit (ITC) and the cash payment ratio.
  • The petitioner submitted a reply to the SCN and specifically requested a personal hearing.
  • The adjudicating authority passed the Order-in-Original ex-parte, allegedly without affording an effective personal hearing to the petitioner.
  • The order was merely uploaded on the GST portal, and the petitioner gained actual knowledge of it only after recovery proceedings were initiated from its Electronic Credit Ledger.
  • By the time the petitioner discovered the order, the statutory limitation period for filing an appeal under Section 107 had expired, and the portal reflected the appeal as time-barred.
  • The petitioner filed a writ petition seeking directions to entertain the appeal 125 days beyond the prescribed limitation period, relying on Division Bench precedents, while the Revenue objected on the ground of availability of an alternate remedy.
Decision
  • The High Court held that a statutory appeal under Section 107 before the Appellate Authority is the appropriate remedy against an Order-in-Original, and it was not inclined to entertain the writ directly without exhaustion of the alternate remedy.
  • The Court observed that the delay of 125 days in filing the appeal occurred due to circumstances beyond the petitioner’s control (i.e., portal-only uploading and lack of direct communication).
  • Guided by binding precedents on sufficient cause, the Court held that a direction to condone the delay and entertain the statutory appeal was warranted.
  • The High Court directed the Appellate Authority to entertain the appeal and adjudicate the matter on merits, provided the petitioner files the appeal within 30 days from the date of uploading the Court’s order.
Key Takeaways
  • Condonation of Portal-Related Delays: Delays in filing appeals caused by orders being merely uploaded on the GST portal without direct notification constitute a sufficient cause for condonation.
  • Exhaustion of Statutory Remedies: Courts prefer directing appellate authorities to hear time-barred appeals on merits rather than exercising direct writ jurisdiction over assessment orders, provided genuine reasons for delay exist.
  • Principles of Natural Justice: Ex-parte orders passed without providing an effective personal hearing strengthen the taxpayer’s case for receiving a fair hearing on merits at the appellate stage.
HIGH COURT OF RAJASTHAN
Khandelwal Decor World
v.
Union of India
Arun Monga and Ashutosh Kumar, JJ.
D.B. Civil Writ Petition No. 17409 of 2026
SEPTEMBER  3, 2026
Kuldeep Kumar Sharma and Mayank Vyas, Advs. for the Petitioner. Ms. Mahi Yadav, AAG and Ms. Chelsi Agarwal, AAAG for the Respondent.
ORDER
Arun Monga, J.- The petitioner herein, inter alia, seeks quashing and setting aside of the impugned Order-in-Original dated 19.12.2025, passed by Deputy Commissioner, State Tax, Circle-G, Zone III, Jaipur, (Financial Year 2021-22) whereby demand of Rs. 17,85,532/- was raised against the petitioner on account of alleged discrepancy between utilized Input Tax Credit and cash payment ratio, as per the data available on the common portal. The petitioner further seeks a direction commanding the respondents to entertain the appeal against the impugned Order-in-Original and also condone the delay in filing the same. The appeal against the said Order-in-Original could not per force be filed before the Appellate Authority as the online status of the appeal would reveal that the same is time-barred. Aggrieved by the same, petitioner filed the instant writ petition on 21.08.2026.
2. Learned counsels for the petitioner submit that the non filing of the appeal is bona fide and not intentional. It is submitted that the petitioner could not file the statutory appeal within the prescribed period as the impugned Order-in-Original dated 19.12.2025 was never effectively communicated to the petitioner and was merely uploaded on the GST Portal. They further submit that the petitioner had duly submitted a reply dated 09.10.2025 to the Show Cause Notice dated 09.09.2025 and had specifically sought an opportunity of personal hearing.
2.1 Learned counsels for the petitioner submit that despite the specific request for personal hearing, no effective opportunity of hearing was granted to the petitioner. Without affording such opportunity, the respondent authority proceeded to pass the impugned Order-in-Original dated 19.12.2025 in an ex parte and mechanical manner. The petitioner was thereby deprived of an effective and meaningful opportunity to explain its case, resulting in a clear violation of the principles of natural justice.
2.2 Learned counsels for the petitioner lastly submit that the petitioner came to know of the impugned Order-in-Original only subsequently on 20.07.2026, upon acquiring the knowledge of the recovery of demand from the Electronic Credit Ledger on 08.06.2026. They submit that the petitioner immediately took steps to challenge the same, however, by then, the statutory period for filing the appeal had expired.
2.3 Hence, the present writ petition.
3. In the aforesaid backdrop, we have heard the learned counsels for the parties and perused the record.
4. At the outset, learned counsels for the respondents object to the maintainability of the writ petition herein stating that the alternative remedy as provided under Section 107 of the CGST Act, 2017, has not been availed.
5. Statutory remedy by way of an appeal under Section 107 of the CGST Act, 2017 before the Appellate Authority is provided against the impugned Order-in-Original dated 29.12.2026 For ready reference, Section 107 of the CGST Act, 2017 reads as under:-
“Section 107. Appeals to Appellate Authority.-
(1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.”
x-x-x-x-x
6. In view of the aforesaid, we are not inclined to directly entertain the writ petition without the petitioner exhausting its alternate statutory remedy.
7. The facts on record reveal that the instant writ petition was filed against the impugned Order-in-Original on 21.08.2026, i.e., after a delay of 125 days beyond the statutory period prescribed for filing an appeal under Section 107 of the RGST/CGST Act, 2017. Having considered the reasons stated by learned counsels for the petitioner, we are satisfied that the delay occurred due to circumstances beyond the control of the petitioner.
8. Learned Counsel for the petitioner, relying on the various Division Bench judgments of this very Court in M R Traders v. UOI 2026 SCC OnLine RAJ 2115, Molana Construction Company v. Central GST Department, Rajasthan 89 GSTL 353 (Rajasthan)/2024 SCC OnLine Raj 3938, Man Singh Tanwar v. Commissioner, Central GST Department, Rajasthan [2024] 166  /106 GST 181 (Rajasthan)/D.B. CWP 14658/2024, RPC PSIPL JV v. State of Rajasthan [D.B. CWP No. 7260 of 2025, dated 2-7-2025] and RPC PSIPL JV v. State of Rajasthan [D.B. CWP No. 11794 of 2025, dated 12-8-2025] argues that sufficient cause of delay in filing the appeal due to circumstances beyond control has been shown and thus appeal be directed to be considered on merits after condoning the delay by this Court.
9. In the judgments cited above, this Court, while allowing the writ petitions, have issued directions to entertain the appeal on merits even if, the same were time barred, provided sufficient cause was shown.
10. Accordingly, the Appellate Authority is directed to entertain the appeal of the petitioner and adjudicate the appeal on merits, provided the same is filed within 30 days of the instant order being uploaded on the website of this court.
11. Disposed of accordingly, with liberty as above. All pending applications also stand disposed of.