Gujarat High Court: Genuine Procedural Uncertainty Under Section 128A Qualifies as "Sufficient Cause" for GST Appeal Delay

Case Overview

Manjulaben Vinod Patel Vs Deputy Commissioner of State Tax & Anr. (Gujarat High Court)

The Gujarat High Court recently adjudicated a writ petition filed by a proprietorship firm engaged in manufacturing wooden doors, windows, and frames, challenging both an assessment order issued under Section 73 of the Central/State Goods and Services Tax Act, 2017, as well as an appellate order dated 29.08.2025 that dismissed the statutory appeal as time-barred. The matter raised important questions about the proper exercise of discretionary power by Appellate Authorities when condonation of delay is sought under Section 107(4) of the GST Act, particularly in the context of overlapping legislative changes and portal-related constraints.

Background and Factual Matrix

The assessee, a proprietorship concern registered under GST since 06.07.2018, was subjected to proceedings under Section 73 of the Act for Financial Year 2019-20. The allegation revolved around a mismatch between the Input Tax Credit claimed by the assessee and the ITC reflected in GSTR-2A.

Sequence of Proceedings

  1. The Revenue initiated the matter by issuing a discrepancy intimation in Form GST DRC-01A, pointing out the ITC mismatch for FY 2019-20.
  2. A show-cause notice in Form GST DRC-01 was issued on 29.05.2024, proposing a demand of Rs. 10,51,322/- comprising tax, interest, and penalty on account of excess ITC availment.
  3. The assessee responded by filing a detailed reply in Form GST DRC-06 on 29.06.2024.
  4. Notwithstanding the reply, the Adjudicating Authority proceeded to pass an assessment order under Section 73(9) of the Act on 30.08.2024 in Form GST DRC-07.
  5. Aggrieved by the assessment order, the assessee filed a statutory appeal under Section 107 of the Act in Form GST APL-01 on 28.12.2024, accompanied by an application seeking condonation of the delay of approximately 25 days beyond the initial three-month limitation window.
  6. The Appellate Authority rejected the appeal vide order dated 29.08.2025, holding it to be barred by limitation and concluding that the assessee's explanation — namely, the inability to decide between availing the GST Amnesty Scheme and pursuing an appeal — was insufficient justification for the delay.

Issue 1: Violation of Natural Justice Under Section 75(4)

The assessee's counsel placed reliance on the Gujarat High Court's ruling in Alkem Laboratories Ltd. vs. Union of India (2021) 124 taxmann.com 480 (Guj.), contending that the original assessment order had been passed without affording the assessee a personal hearing as mandated under Section 75(4) of the Act. It was argued that denial of this statutory right rendered the order fundamentally infirm and liable to be set aside on grounds of breach of natural justice alone.

Issue 2: Mechanistic Rejection of Appeal Without Applying Mind