Telangana High Court Permits Delayed GST Appeal Owing to Chartered Accountant’s Illness
Overview
The Telangana High Court in Win Creatives India (P) Limited Vs Union of India examined whether an assessee can be allowed to pursue the statutory appellate remedy under the Central Goods and Services Tax Act, 2017 after missing the prescribed timeline, when such delay arose from the sudden illness of the assessee’s Chartered Accountant.
While refusing to adjudicate the dispute on merits in writ jurisdiction, the Court ensured that the assessee was not deprived of the statutory appeal due to circumstances beyond its control. The Bench granted a short window to file an appeal against the order-in-original along with a delay condonation petition, and directed the appellate authority to decide the matter on merits if satisfied with the explanation for the delay.
Background of the Dispute
Impugned Proceedings
- The assessee, M/s. Win Creatives India (P) Limited, filed a writ petition challenging an order-in-original dated 17.12.2024.
- The order was issued under
Section 74of the Central Goods and Services Tax Act, 2017 for the period July 2017 to March 2018. - The adjudicating authority imposed tax, interest, and penalty and passed the order ex-parte, treating the assessee’s absence as deliberate non-cooperation.
Cause Leading to Ex-Parte Order
According to the assessee:
- Show cause notices were issued, but no written reply could be submitted.
- The failure to respond was attributed to the serious ill-health of the Chartered Accountant who was handling the GST proceedings.
- Due to this medical emergency, the assessee did not participate effectively in the adjudication and was unaware of the final crystallized demand until the order-in-original was served.
Initially, the assessee sought to challenge the order directly before the High Court under Article 226 of the Constitution. However, during the course of hearing, the relief sought was modified to a more limited prayer: permission to approach the statutory appellate authority with appropriate protection regarding delay.
Petitioner’s Stand
Grounds Urged Before the High Court
The assessee’s counsel placed the following submissions:
Non-filing of Reply Due to CA’s Illness
- The regular Chartered Accountant of the assessee had suffered serious ill-health during the relevant period.
- Because the CA was incapacitated, the assessee could not prepare and file a detailed written reply to the show cause notices.
Non-Appearance Not Wilful
- The ex-parte nature of the order was a result of unavoidable circumstances and not any intentional evasion or disregard for the proceedings.
Need for Appellate Remedy
- The assessee desired to contest the matter on both legal and factual grounds before the first appellate authority under the CGST framework.
- Since some time had elapsed from the date of the order, the assessee apprehended a potential delay in filing the statutory appeal.
Prayer Limited to Liberty to Appeal
- Without pressing for consideration of merits in the writ, the assessee specifically sought:
- Liberty to file an appeal against the
order-in-original; and - A direction that the delay condonation application be considered sympathetically in light of the CA’s health condition.
- Liberty to file an appeal against the
- Without pressing for consideration of merits in the writ, the assessee specifically sought:
Revenue’s Submissions
Counsel for the Revenue, representing the Central Board of Indirect Taxes and Customs (CBIC), submitted as follows: