Bona fide delay in filing GST appeal condoned considering medical grounds and pre-deposit stay

By | October 28, 2026
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Bona fide delay in filing GST appeal condoned considering medical grounds and pre-deposit stay

Issue

  • Whether a delay of 47 days in filing an appeal before the Goods and Services Tax Appellate Tribunal (GSTAT) should be condoned when supported by bona fide reasons such as medical ill health and portal communication lapses.
  • Whether a separate stay order against demand recovery is required once the statutory pre-deposit for filing an appeal under Section 112 has been made by the appellant.

Facts

  • Adjudication & First Appeal: A GST demand was raised against the appellant via Form GST DRC-07 following an order passed by the Assistant Commissioner, State Tax, Nacharam.
  • Non-Receipt of Notice: The appellant asserted that there was no physical service of the Show Cause Notice or order, and knowledge was delayed due to the exit of their accountant in June 2024. The appellant first learned of the demand via a departmental phone call in December 2024.
  • Dismissal by First Appellate Authority: The first appeal filed before the Appellate Joint Commissioner, Secunderabad, was rejected in February 2026 on the grounds of limitation without addressing the merits.
  • Tribunal Appeal & Delay Condonation: The appellant filed an appeal before the GSTAT in September 2026, accompanied by an application to condone a 47-day delay. The delay was attributed to the illness of their Chartered Accountant (backed by medical records) and reliance on GSTAT notifications extending filing dates.
  • Revenue Objection: The Revenue opposed the maintainability of the appeal and the delay condonation application.

Decision

  • Condonation of Delay & Admission: The Tribunal held that the material on record supported a prima facie view that the reasons for the delay were bona fide and warranted condonation; hence, the appeal was admitted for regular hearing.
  • Deemed Stay of Recovery: Under the statutory scheme of Section 112, upon payment of the mandatory appellate pre-deposit, recovery of the remaining demand stands automatically deemed stayed until the final disposal of the appeal.
  • No Separate Stay Order Required: Consequently, a separate stay order was deemed unnecessary, and the respondents were directed to comply with the statutory mandate regarding the automatic stay.
  • Ruling in Favor of Assessee: The issue was decided in favor of the assessee.

Key Takeaways

  • Bona Fide Grounds for Condonation: Genuine delays supported by verifiable evidence, such as medical ill health of professional representatives and administrative communication lapses, justify condonation of delay under Section 112.
  • Automatic Statutory Stay via Pre-Deposit: Payment of the statutory pre-deposit under Section 112 automatically operates as a deemed stay against the recovery of the balance tax demand, eliminating the need for an explicit stay application or order.
  • Protection Against Coercive Recovery: Tax authorities cannot initiate recovery proceedings for remaining tax liabilities while an admitted appeal supported by pre-deposit is pending before the GSTAT.
GOODS AND SERVICE TAX APPELLATE TRIBUNAL , HYDERABAD BENCH
P K Feeds & Manures
v.
Quorum
Sushil Kumar Sharma, Judicial Member
and U Sreenivasulu, Technical Member
CODN.APPL/1/HYD/2026
APL/841/2026
OCTOBER  16, 2026
Bhanu Pratap for the Appellant. Srinivasulu for the Respondent.
ORDER
1. Shri Bhanu Pratap appeared for the Appellant.
2. Shri Srinivasulu and Shri Narender appeared for the Respondent.
3. Ld. Counsel for the Appellant submitted that the application for urgent mentioning on 13.10.2026 requesting that the appeal be takenup for early hearing on the grounds stated there in. It was submitted that the appeal filed by the Appellant was still at the scrutiny stage, and that early hearing was warranted in view of the circumstances set out in the application.
4. Having regard to the grounds stated in the application, the matter be directed to be listed on 15.10.2026. On 15.10.2026, the Registry informed the Bench that the name of the Respondent had not been property incorporated in the cause title of the appeal and that a defect in this regard had been pointed out by the Registry. Accordingly, the Appellant was directed to rectify the defect by suitably amending the cause title of the appeal.
5. Pursuant to the appellant’s application for urgent mentioning, the matter has been listed for hearing today i.e. on 16.10.2026. Since the matter has been taken up for hearing, pursuant to the appellant’s application for urgent mentioning, the said application stands disposed of accordingly.
6. Ld. Counsel for Appellant was also heard on the admission of the appeal.
7. He submitted that the accountant engaged by the appellant to attend to its GST related portal works, left the job in June, 2024. It was contended that the said accountant had been handling the GST portal and related work of the appellant’s establishment on a day-to-day basis. After his departure, the appellant neither received any physical copy of the impugned order and consequential form GST DRC-07, not aware of their uploading on the GST portal. The appellant also submitted that no SCN had come to his knowledge. He further submitted that appellant first received telephonic information from the GST Department on 23.12.2024, thereby the appellant was informed of the demand raised through form GST DRC-07 and was asked to deposit the amount demanded. Thereafter, the appellant contacted its CA for advice regarding the legal remedies. The appellant filed first appeal before the Appelate Joint Commissioner, Secunderabad State Tax on 27.12.2024. The appeal was rejected on 28.02.2026 for the delay in submission of the appeal without considering the merits of the case.
7. The Ld. Counsel for the Appellant has specifically stated that the last date for filing of appeals before the Tribunal has been extended to 31.07.2026 vide notification F.No.A-50/7/2025- GSTAT DoR, dated 30.06.2026. The Ld. Counsel further submitted that the appellant has filed the appeal before the Tribunal on 16.09.2026 and submitted that there is a delay of 47 days considering the last date for filing the appeal before the Tribunal as 31.07.2026 as per the said notification.
9. It was further submitted that the delay in pursuant to the appeal was also attributable to the ill health of the appellant’s CA Shri L.N. VVS Kumar, in support of which the medical certificate was placed on record. Principle contention of the Ld. Counsel for the Appellant was that the delay for filing the appeal was bonafide and had occurred for the reasons beyond appellant’s control.
10. The Ld. counsel for the appellant submitted that application for contention of delay had been filed alongwith the appeal. He also sought the stay of the operation and implementation of the impugned order dated 28.02.2026 passed by the Original Appellate Authority, namely Joined Commisisoner of State Tax, Secunderabad be stayed, otherwise, the appellant would suffer irrepairable loss.
11. Ld. Departmental Representatives appear for the Respondents opposed maintainability of the appeal. They submitted that no satisfactory explanation for the delay in filing appeal had been furnished on record and that the First Appellate authority had, therefore, rightly dismissed the appeal, upon filing the explanation for the appeal be unsatisfactory.
12. We have heard the submissions advanced by the Ld. counsel for the appellant and the Ld. DRs. We have also carefully considered the documents placed on record and the facts and circumstances of the case.
13. Upon consideration of the material available on record, we are of the prima facie, view that the appeal deserves to be admitted for regular hearing. The reasons advanced by the appellant for delay in pursuant to appellate remedy appear, at this stage, be bonafide and warrant consideration.
14. Accordingly, the appeal is admitted for regular hearing.
15. As regards the prayer for stay of the operation and implementation of the impugned order passed by the Assistant Commissioner, Circle-I, State Tax, Nacharam, Secunderabad, the same has been considered.
16. It has been submitted by the Ld. counsel for the appellant, and the registry also confirmed that the appellant has deposited 20% of the stipulated pre-deposit amount in terms of Section 112(8) of the CGST Act, 2017. Although the appeal has been admitted for hearing in view of the provisions contained in provisions in Sec. 112(9) of the CGST Act, 2017, which provide that ” where the appellant has paid the amount as per sub-section (8), the recovered proceedings for the balance amount shall be deemed to be stayed till the dismissal of the appeal”.
17. The respondents are directed to comply all the aforesaid statutory provision.
18. In view of the above direction, the appellant’s prayer for stay of the operation and implementation of the impugned order stands disposed of. No separate order, in this regard, is considered necessary.
19. The respondents are directed to file their counter and cross objections if any, on or before the next date of hearing.
20. List the case after four (4) weeks.