GST UPDATE

Hon’ble Court: Rajasthan High Court
Case Title: Shri Om Casting vs Assistant Commissioner, State Goods And Service Tax
Petition No. & Citation: D.B. Civil Writ Petition No. 8117/2026

Hon’ble Judge(s)	JUSTICE ARUN MONGA & JUSTICE MANEESH SHARMA
Date of Order	15/07/2026
Outcome	Appel Allowed

Brief Facts of the Case

The petitioner filed an appeal against the Order-in-Original confirming the demand of excess availment of Input Tax Credit. The petitioner filed an appeal which involved a delay of 325 days beyond the condonable period. Consequently, the Appellate Authority rejected the appeal, holding that it lacked the statutory power to condone such delay. Aggrieved thereby, the petitioner approached the Rajasthan High Court by way of a writ petition.

Relevant Section

Section 107 of the CGST Act, 2017.

Question before Hon’ble Court / Authority

Whether the High Court can direct condonation of delay beyond the statutory period prescribed under Section 107 of the CGST/RGST Act where the delay occurred due to non-communication of the adjudication order and the order was merely uploaded under the "Additional Notice and Order" tab on the GST portal.

Brief Arguments by Petitioner

The delay was bona fide and occurred due to circumstances beyond its control. The adjudication order was never communicated through any prescribed mode of service. Mere uploading of the order under the "Additional Notice and Order" tab cannot be treated as proper communication. The petitioner became aware of the order only after receiving recovery proceedings in Form GST DRC-13 and thereafter filed the appeal without undue delay. Reliance was placed on various previous decisions of the Rajasthan High Court.

Brief Arguments by Respondent

Since the statute does not empower the Appellate Authority to condone delay beyond the permissible period, the rejection of the appeal on the grounds of limitation was justified.

Cases Relied Upon

Case Law	Citation
M/s M R Traders v. UOI	2026 SCC OnLine RAJ 2115
M/s Molana Construction Company v. Central Goods and Service Tax Department & Ors	2024 SCC OnLine Raj 3938
Man Singh Tanwar v. Commissioner, Central goods and Services Tax Department & Ors	D.B. CWP 14658/2024
RPC PSIPL JV Vs. State of Rajasthan & Ors	D.B. CWP 7260/2025
RPC PSIPL JV Vs. State of Rajasthan & Ors	D.B. CWP 11794/2025

Findings and Judgement

The Rajasthan High Court observed that although the Appellate Authority is strictly bound by the limitation prescribed under Section 107 of the CGST/RGST Act, the High Court, in exercise of its writ jurisdiction, can grant appropriate relief where sufficient cause exists and denial of adjudication on merits would result in grave injustice. The Court relied upon its consistent line of earlier Division Bench judgments wherein similar relief had been granted.
Accordingly, the Court:
Condoned the delay of 325 days (after excluding the statutory condonable period of 120 days under Section 107) and directed the Appellate Authority to entertain and decide the appeal on merits

Comments

GST Update/ 2026-27/0060

GST UPDATE

Brief Facts of the Case

Relevant Section

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Brief Arguments by Petitioner

Brief Arguments by Respondent

Cases Relied Upon

Findings and Judgement

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