Gauhati HC Condones 265-Day Delay in GST Appeal: Cites Procedural Delay by Govt Justified [Read Order]

The matter arose from a service tax dispute between the CGST authorities and M/s Numal Saikia, a contractor based in Banipur, Dibrugarh. The original order in question had been passed by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata. The tax authorities approached the High Court almost 265 days later, seeking to file an appeal against the CESTAT verdict.

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The government, through its counsel, filed an Interlocutory Application, seeking condonation of the delay in filing the appeal. The only justification provided in the application was the typical governmental delay in processing and preparing the appeal.

Representing M/s Numal Saikia, the authorized representative, opposed the condonation plea. He argued that the explanation offered was vague and failed to show sufficient cause for such a long delay. More importantly, he pointed out a glaring procedural lapse in the matter, there was no pre-show cause notice consultation, which is mandatory under the law before initiating any demand for taxes in the context of works contract services.

The AR asserted that in this particular case, the services rendered by the respondent were for a government organization, and as per prevailing service tax exemptions, such services were exempted from taxation altogether and that not only was the delay unjustified, but the original case lacked legal merit.

The Division Bench comprising Chief JusticeMr. Ashutosh Kumar and Justice Mr. Michael Zothankhuma, while acknowledging the prolonged lag in filing the appeal, held that the reasons stated by the department were sufficient to justify condonation in this case. It was further observed that for the reasons stated in the application, the prayer for condonation of delay is allowed.

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