GST Update

Desk of CA. Praveen Sharma – 835 Series (CAPS)

Delhi High Court in the case of Movers International Private Limited

Case Background:
Movers International Pvt. Ltd. filed a writ petition challenging the Appellate Authority’s order dated 5 June 2025, which rejected condonation of a 16-day delay in filing appeal under Section 107 of the CGST Act against the adjudication order dated 29 August 2024.

Appellate Authority’s Observation:
The appeal, due by 28 November 2024, was filed on 14 December 2024. The authority held that the reason for delay — pendency of a rectification application — did not constitute “sufficient cause” and thus rejected the appeal as time-barred.

Petitioner’s Argument:
The petitioner argued that the delay was bona fide, as they were awaiting the decision on their rectification application filed on 2 September 2024, believing it would resolve the dispute before appealing.

Department’s Stand:
The Revenue contended that the Appellate Authority acted lawfully, relying on Ajay Dabra v. Pyare Ram (SC), which mandates reasonable explanation for every day’s delay in appeals.

Court’s Observation:
Justice Prathiba M. Singh held that Section 107(4) allows condonation of delay up to one month on showing sufficient cause. The 16-day delay fell within this period, and the reason cited was reasonable.

Reliance on Precedents:
The Court cited rulings from the Andhra Pradesh High Court (Shaik Abdul Azeez) and Calcutta High Court (Kajal Dutta), which upheld the High Courts’ powers under Article 226 to condone minor delays in genuine cases to ensure justice.

Final Order:
The 16-day delay was condoned, subject to payment of ?5,000 as costs to the GST Department. The appeal was restored before the Appellate Authority, and the petitioner was directed to appear on 11 November 2025, with the appeal to be decided on merits.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS