Madras High Court Condoned 291-Day Delay in Filing GST Appeal Due to Unawareness
The Madras High Court has accepted a 291-day delay in filing a GST appeal, ruling that the petitioner's unawareness of the uploaded assessment order on the GST portal constitutes a 'genuine cause'.
GstMadras High CourtTax AppealAssessment OrderReal EstateReal EstateJun 26, 2025
The petitioner, M/s Annai Medicals, had approached the Court challenging the rejection of their appeal solely on the ground of limitation. The petitioner argued that though a show cause notice was issued on February 24, 2023, and a detailed reply along with supporting documents was filed, the assessment order was passed on June 27, 2023, without consideration of their submissions.
However, since the order was merely uploaded on the GST common portal and not physically communicated or otherwise brought to the petitioner’s notice, they remained unaware of it. As a result, the appeal was filed only on August 13, 2024, after a delay of 291 days.
The appellate authority rejected the appeal on October 15, 2024, citing that the delay exceeded the condonable limit. The petitioner challenged this rejection before the High Court, stating that the delay was neither deliberate nor wanton but due to the absence of effective communication of the order.
Justice Krishnan Ramasamy, after considering the facts and hearing both sides, held that the petitioner’s explanation was genuine. As the petitioner had already deposited the statutory 10% of the disputed tax at the time of filing the appeal, the Court directed the petitioner to make an additional 10% deposit due to the lengthy delay. Post-compliance with the same by the petitioner, the appellate authority was instructed to admit the appeal and decide it on merits after granting the petitioner an adequate opportunity of hearing.
This ruling highlights the importance of effective communication in tax matters and the need for authorities to ensure that taxpayers are adequately informed about important decisions that affect their rights and obligations. It also underscores the Court’s willingness to consider genuine reasons for delays, provided taxpayers take steps to rectify the situation promptly.
Frequently Asked Questions
What is the Goods and Services Tax (GST) Act?
The Goods and Services Tax (GST) Act is a comprehensive indirect tax levied on the supply of goods and services in India. It aims to streamline the tax system by replacing multiple indirect taxes with a single tax, making it easier for businesses and consumers.
Why did the Madras High Court condone the 291-day delay in filing the GST appeal?
The Madras High Court condoned the 291-day delay because the petitioner was unaware of the uploaded assessment order on the GST portal. The Court ruled that this unawareness constituted a 'genuine cause' for the delay.
What steps did the Court instruct the petitioner to take to rectify the delay?
The Court directed the petitioner to make an additional 10% deposit of the disputed tax due to the lengthy delay. After complying with this directive, the appellate authority was instructed to admit the appeal and decide it on merits.
How important is effective communication in tax matters?
Effective communication is crucial in tax matters to ensure that taxpayers are aware of important decisions that affect their rights and obligations. This case highlights the need for authorities to communicate assessment orders and other significant tax-related information promptly to taxpayers.
What is the significance of this ruling for future tax appeals?
This ruling is significant as it shows the Court’s willingness to consider genuine reasons for delays in tax appeals. It emphasizes the importance of effective communication and the need for taxpayers to take steps to rectify situations promptly.
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