Karnataka HC Quashes Rejection of GST Appeal Filed on 90th Day, Finds It Within Limitation [Read Order]

The Karnataka High Court quashed the rejection of a Goods Service Tax (GST) appeal filed on the 90th day, holding that it was within the time limit prescribed under Section 107 of the CGST Act,2017.

S K Takappa,petitioner-assessee,moved the Court under Article 226 of the Constitution, challenging the rejection of his appeal filed on 22.03.2024. He questioned the order passed on 08.10.2024 and the rectification order dated 13.01.2025. He asked the Court to direct the authority to accept his appeal and decide it on merits.

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The assessee’s counsel stated that the appeal was filed on 22.03.2024 against the order dated 20.12.2023, which was received by email on 22.12.2023. He said the appeal was filed on the 90th day and was within the time limit under Section 107 of the 2017 Act.

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He argued that the second respondent dismissed the appeal citing a two-day delay, without checking the actual timelines or giving the assessee a chance to be heard.

A rectification application along with an affidavit seeking condonation of delay, if any, was also filed, but it was rejected on 13.01.2025.

The counsel submitted that both orders were passed without proper application of mind and without giving the assessee an opportunity to present the case. He maintained that the appeal was within time and should have been considered on merits.

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The court noted that the second respondent should have properly used its powers under Section 107(1) and (2) of the 2017 Act and heard the appeal on merits.

It observed that the order was passed on 20.12.2023 and emailed to the petitioner on 22.12.2023. Since email is a valid mode of communication under Section 169, and the appeal was filed on the 90th day, it was within the time limit given under Section 107.

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A single member bench comprising S.G.Pandit (Judge)  also noted that the petitioner had filed a rectification application along with an affidavit seeking condonation of delay, if any. Since the appeal was within the condonable period, the second respondent should have considered it properly. Instead, it failed to apply its mind and rejected the appeal without giving the assessee a chance to be heard.

In short,the petition filed was disposed of.

To Read the full text of the Order CLICK HERE

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