The term 'sufficient cause' under Section 107(4) of the A.P. G.S.T Act, 2017 should be interpreted with a justice-oriented approach, and the right of appeal is a substantive right that cannot be denied by a pedantic view.

ORDER :

Venkata Jyothirmai Pratapa, J.

Petitioner prays for a Writ of Mandamus declaring the action of Respondent No.2 in rejecting the appeal through the impugned Order dated 03.06.2023 as illegal, arbitrary and contrary to the provisions of the Act and consequently, to set aside the same and pass such other orders may deem fit and proper in the circumstances of the case.

2. Heard Sri Vemireddy Bhaskar Reddy, learned counsel for the petitioner and the learned Government Pleader for Commercial Tax.

3. This matter is disposed of at the stage of admission as requested by Counsels on record.

Petitioner’s case in nutshell :-

4. Petitioner is a registered dealer on the rolls of the Assistant Commissioner (ST) Chittor-I under the provisions of both CGST and SGST Act, 2017 and is engaged in the business of purchase and sale of iron scrap. On 21.01.2023, the Assistant Commissioner (ST) Regional GST Audit and Enforcement Wing conducted inspection in the business premises of the petitioner and ascertained taxable amount of Rs.05,48,29,347/- including Tax, Penalty and interest vide Orders under DRC-07.

(b) Petitioner challenging the correctness of the Order passed by the Assessing Authority carried the matter before respondent No.2-Additional Commissioner (ST) and the Appellant Authority, Tirupathi, Chittor District under Section 107 of the A.P. G.S.T Act, 2017 along with a request to condone delay of 25 days in preferring the appeal. As the petitioner’s accounts were frozen by the Department, he could not mobilize the funds required for pre-deposit of 10% of the disputed tax for filing appeal, which is mandatory.

(c) The entire business transactions have come to a grinding halt due to the provisional attachment orders issued to the banks as well as to the dealers to whom he has supplied goods and yet to receive the consideration.

(d) Respondent No.2 rejected the appeal on untenable grounds vide impugned Order dated 03.06.2023, since the Appellate Tribunal is yet to be constituted, petitioners approached this Court challenging the impugned order passed by the respondent No.2.

5. Learned counsel for the petitioner would submit that though the petitioner preferred appeal within condonable period of limitation, the Appellate Authority rejected the appeal without considering the genuine reason for the petitioner filing appeal with delay and passed the impugned Order, which is not tenable under law. Though it is the discretion of the appellate authority to condone the delay, discretion has to be exercised judiciously. The petitioner’s bank accounts were frozen, notices issued to the dealers to whom he has supplied the goods and yet to receive the consideration. Learned Appellate Authority ought to have considered the reason for the delay since he was prevented by sufficient cause and entertained the appeal.

6. Per contra, learned Government Pleader would submit that the impugned Order is a reasoned Order. Learned authority opined that the reason for the delay is not convincing. The petitioner, without giving any details of the financial crisis his business faced, simply mentioned that he has faced unforeseen and severe financial crisis. The plea regarding the difficulties in securing the loan amount also far from truth. Respondent No.2 rightly rejected the appeal and therefore, prays for dismissal of the petition.

7. Having heard the submission of both counsel, now the points that would emerge for determination are:

i. Whether the petitioner was prevented by sufficient cause from presenting the appeal within the statutory period of limitation ?

ii. To what relief ?

8. To answer the points framed supra, a keen perusal of the relevant provisions under the GST Act, 2017 would serve the purpose. 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 Autho