Rajasthan High Court Protects Right to Appeal in Time-Barred GST Matters Under Section 73

The Rajasthan High Court, in Rajoria Bharat Gas Vs Union of India, has reiterated that an assessee cannot be deprived of a remedy on merits against a Section 73 order of demand merely because the statutory time limit for filing a GST appeal under Section 107 has expired, particularly where there is no allegation of fraud.

By relying on earlier decisions of the same High Court and the Supreme Court judgment in M/s Tecnimont Pvt. Ltd vs. State of Punjab and Ors. (2021) 12 SCC 477, the Court permitted the assessee to file a delayed appeal and directed the Appellate Authority to adjudicate it strictly on merits, without reopening the question of limitation.

Factual Background and Assessee’s Difficulty

Appeal Blocked on GST Portal for Being Time-Barred

The assessee, Rajoria Bharat Gas, approached the Rajasthan High Court under its writ jurisdiction, challenging the inability to file a GST appeal against an order passed under Section 73 of the CGST/RGST framework.

  1. The impugned order was passed under Section 73 of the Act, imposing an additional tax demand.
  2. The assessee attempted to file an appeal under Section 107 of the CGST Act, 2017 / Rajasthan GST Act, 2017.
  3. The GST portal, however, did not accept the appeal as the prescribed appeal period under Section 107 had already lapsed.
  4. As a result, the assessee’s statutory remedy before the Appellate Authority became practically inaccessible.

Reasons Cited for the Delay

The assessee’s counsel placed before the Court specific circumstances explaining the delay in filing the appeal:

  • The consultant engaged by the assessee was aware of the order passed under Section 73, but:
    • The consultant fell seriously ill around the relevant time and was unable to communicate the passing of the order to the assessee.
  • Simultaneously, the assessee was under extreme operational strain due to:
    • Heavy pressure of LPG gas distribution,
    • A countrywide shortfall triggered by the Gulf War situation.
  • Because of this combination of:
    • The consultant’s illness, and
    • The assessee’s engagement in urgent LPG supply obligations,
      the assessee could not obtain timely knowledge of the impugned order and, consequently, could not file the appeal within the statutory timeframe.

On this basis, the assessee requested that:

  1. The delay in filing the appeal be effectively condoned.
  2. The assessee be permitted to file a physical appeal (offline), bypassing the portal’s bar.
  3. The appeal be directed to be heard and decided on merits by the Appellate Authority.

Stand of the GST Authorities

Objection on Imputed Knowledge and Limitation

The respective GST Departments opposed the writ petition on the following lines: