Delay Condonation Under GST Law: Constitutional and Judicial Perspective on Unequal Treatment of Assessee vs. Government

Introduction

The Goods and Services Tax (GST) framework was envisioned as a modern, technology-driven, and equitable taxation system. However, in practice, one of the most persistently contested issues in appellate proceedings under GST law has been the question of limitation periods and delay condonation. The disparity in how courts and appellate authorities treat delays by government departments versus delays by assessees has become a source of serious legal concern.

A recurring grievance among business communities and tax professionals is that while government departments tend to receive a lenient approach in condoning their procedural delays, assessees frequently find their appeals dismissed on purely technical limitation grounds — even where no malicious intent exists and taxes have already been deposited. This situation raises a critical constitutional and legal question:

If limitation provisions apply equally to both the government and the assessee, can asymmetric treatment in delay condonation survive scrutiny under Article 14 of the Constitution of India?

This article explores this question through the lens of statutory provisions, judicial precedents, constitutional principles, and practical realities in GST litigation.

What Does Section 107 Say?

Section 107 of the GST Act, 2017 lays down the framework for filing appeals before the Appellate Authority. The key limitation provisions under this section are as follows:

  • An appeal must be filed within three months from the date of communication of the order being appealed against.
  • The Appellate Authority has the power to condone a delay of up to one additional month, provided there is sufficient cause shown by the appellant.

The Practical Consequence

This means the maximum permissible delay condonation under Section 107 is strictly capped at one month. In practice, this limitation operates harshly, particularly for assessees, because:

  • Tax dues may already have been paid in full prior to the appeal filing.
  • No mala fide intent may be present on the part of the assessee.
  • On merits, the case may be entirely deserving of a hearing.
  • Technical difficulties on the GST portal or lack of awareness may have contributed to the delay.

Despite these circumstances, appellate authorities often dismiss appeals mechanically on limitation grounds, denying the assessee any opportunity to be heard on merits.

Is the Government Also Bound by Limitation?

A fundamental question that arises in this context is whether the government, as a litigating party, is equally bound by limitation laws. The answer — emphatically — is yes.

The law of limitation applies uniformly to:

  1. Assessees and private litigants
  2. Government departments and ministries
  3. Public authorities and statutory bodies

The Supreme Court of India has, on multiple occasions, categorically rejected the notion that government departments are entitled to a special or preferential limitation regime simply by virtue of their administrative character.

Postmaster General v. Living Media India Ltd.

CIVIL APPEAL NO. 2474-2475 OF 2012 (Arising out of SLP (C) Nos. 7595-96 of 2011)

In this landmark decision, the Hon'ble Supreme Court held that:

Delay condonation is not an automatic right, and government departments cannot treat it as a natural entitlement.