Introduction:
The Hon’ble Madras High Court, in the case of M/s. Great Heights Developers LLP v. Additional Commissioner Office of the Commissioner of CGST & Central Excise, Chennai, allowed an appeal before the Appellate Authority, emphasizing the validity of medical reasons for delay in filing an appeal under the Central Goods and Services Tax Act, 2017 (CGST Act).
Facts:
M/s. Great Heights Developers LLP (“the Petitioner”) received an Assessment Order dated August 14, 2023 (“the Impugned Order”) imposing interest and penalty under Sections 73(9) and 73(7) of the CGST Act. The Petitioner, due to medical reasons, failed to file the appeal within the stipulated 90-day period.
Issue: The central question was whether medical reasons constitute a valid ground for condoning the delay in filing an appeal before the Appellate Authority.
Court’s Decision:
The Madras High Court held that under Section 107 of the CGST Act, the Appellate Authority does not have the power to condone delay beyond 120 days. However, considering the Petitioner’s medical condition and the short duration of delay (24 days), the Court allowed the appeal to be presented. The Appellate Authority was directed to receive and dispose of the appeal on its merits within ten days of receiving a copy of the court’s order.
Conclusion:
The ruling underscores the significance of valid mitigating circumstances, such as medical conditions, in condoning delays in filing GST appeals. This decision provides relief to taxpayers facing genuine difficulties and ensures that appeals are considered fairly and on their merits, even in exceptional circumstances.
