While the statutory Appellate Authority cannot condone delay beyond the limit prescribed in Section 107 of the GST Act, the High Court, under Article 226, can condone such delay to prevent grave prejudice and protect the right to livelihood.

Order(Oral)

Per: Arun Monga, J

1. The petitioner herein, inter alia, seeks a direction commanding respondent No.3 to condone the delay of 301 days in filing the appeal against the Order-in-Original dated 31.12.2024 (Annexure-4), passed by the Assistant Commissioner, State Tax, Circle Sanchore, Ward-II, Headquarter Bhinmal, whereby order for cancellation of GST registration issued against the petitioner with retrospective effect from 22.07.2022. The appeal against the said order was filed on 25.02.2026. However, the Appellate Authority vide order dated 27.03.2026 (Annexure-9) dismissed the appeal on the ground of limitation as it does not have the power to condone the delay in filing the appeal.

2. Learned counsel for the petitioner submits that the delay in filing the appeal occurred due to unavoidable and bona fide circumstances beyond the control of the petitioner. It is contended that the petitioner had relied upon the tax consultant entrusted with handling GST compliances and related proceedings, and owing to lack of proper communication regarding the cancellation proceedings, the Petitioner remained unaware that the registration had already been cancelled. It is further submitted that immediately upon gaining knowledge of the same, the petitioner took prompt steps to prefer the appeal. The delay is neither wilful, deliberate nor intentional, but has occurred for reasons beyond the Petitioner’s control.

2.1 Owing to these circumstances, learned counsel thus submits that the petitioner could not take necessary steps within the prescribed period. The delay is neither wilful, deliberate nor intentional, but has occurred for reasons beyond the Petitioner’s control. It is, therefore, most respectfully prayed that the delay in filing the appeal be kindly condoned in the interest of justice.

3. In the aforesaid backdrop, we have heard the learned counsels for the parties and perused the record.

4. Learned Counsel for the petitioner, relying on the various Division Bench judgments of this very Court in M/s Molana Construction Company v. Central Goods and Service Tax Department & Ors, 2024 SCC OnLine Raj 3938, Man Singh Tanwar v. Commissioner, Central goods and Services Tax Department & Ors., D.B. CWP 14658/2024, RPC PSIPL JV Vs. State of Rajasthan & Ors, D.B. CWP 7260/2025 and RPC PSIPL JV Vs. State of Rajasthan & Ors, D.B. CWP 11794/2025, 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.

5. Learned counsel for the respondents opposes the above submission and contends that the assessment order has rightly been passed, appeal is now barred by limitation.

6. Having heard, as above, it transpires that while it is true that the Appellate Authority is bound by the statutory provisions of limitation provided under Section 107 of the RGST Act , however, considering the reasons owing to which the petitioner could not file its appeal within the stipulated time, being beyond its control, non- adjudication of appeal on merits would cause grave injury and prejudice to the petitioner.

7. In the judgments cited above in para 4 of preceding part of instant order, this Court, while allowing the writ petitions, issued directions to entertain the appeal on merits.

8. In the context of present case, where cancellation of GST registration results in loss of livelihood, reference may also be had to another judgment of this Court in M/s M R Traders v. UOI , 2025 SCC OnLin