The Appellate Authority responsible for GST matters has the authority to extend the deadline for filing an appeal beyond the statutory period, provided that the taxpayer provides a valid explanation for the delay.

Introduction

A taxpayer challenged the rejection of their Goods and Services Tax (GST) appeal by the Appellate Authority. The appeal was rejected on the grounds of delay, despite the taxpayer providing a valid explanation and supporting documents.

Key Points of the Case

• Appeal Rejection: The Appellate Authority rejected the taxpayer's appeal due to a delay of six days in filing it.
• Explanation for Delay: The taxpayer submitted an application for condonation of delay, providing a reasonable explanation and supporting documents.
• Appellate Authority's Approach: The court criticized the Appellate Authority for mechanically rejecting the appeal without considering the taxpayer's explanation.

Court's Ruling

The court found that the Appellate Authority had acted unjustly by rejecting the appeal without properly evaluating the taxpayer's explanation for the delay. The court considered the following factors:

• Statutory Right to Appeal: The taxpayer had a statutory right to appeal the adjudication order.
• Pre-Deposit: The taxpayer had made the necessary pre-deposit to maintain the appeal.
• Reasonable Explanation: The taxpayer's explanation for the delay was found to be reasonable.
• Appellate Authority's Powers: The court clarified that the Appellate Authority has the power to condone delays beyond one month, especially when there is a valid explanation.

Conclusion

Based on these findings, the court set aside the Appellate Authority's rejection order and remanded the matter back to them for a fresh hearing on the merits. The court directed the Appellate Authority to complete the hearing process within eight weeks.

GST Case Law Touchwin Complex Pvt. Ltd. Versus Assistant Commissioner OF Revenue

Citation-2024 TAXONATION 1577 (CALCUTTA)

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