• Dated 22^nd July, 2026

High Court Condones Delay Beyond Statutory Limit in GST Appeal to Prevent Loss of Livelihood: Rajasthan High Court

BRIEF FACTS:

The Assessee 's GST registration was cancelled retrospectively with effect from 22.07.2022 by an Order-in-Original dated 31.12.2024. Aggrieved by the cancellation, the Assessee filed an appeal on 25.02.2026 with a delay of 301 days beyond the maximum period prescribed under Section 107 of the CGST/RGST Act. The Appellate Authority dismissed the appeal solely on the ground that it had no power to condone the delay beyond the statutory period. Challenging the appellate order, the Assessee approached the Rajasthan High Court seeking condonation of delay and restoration of the appeal.

ASSESSEE'S CONTENTION:

The Assessee submitted that the delay was neither intentional nor deliberate but occurred due to bona fide circumstances beyond her control. It was contended that the Assessee had entrusted all GST compliances to a tax consultant and, owing to lack of proper communication, remained unaware that her GST registration had been cancelled. Immediately upon coming to know of the cancellation, the Assessee took prompt steps to file the appeal. The Assessee further relied upon various decisions of the Rajasthan High Court wherein, in exercise of its writ jurisdiction, the Court had condoned delays beyond the statutory period and directed the Appellate Authority to decide the appeals on merits to avoid denial of substantive justice.

DEPARTMENT'S CONTENTION:

The Department contended that the Appellate Authority had rightly rejected the appeal as being barred by limitation. It was submitted that Section 107 of the GST Act prescribes a specific limitation period for filing appeals and the Appellate Authority has no jurisdiction to condone delay beyond the period expressly permitted under the statute.

DECISION:

The Rajasthan High Court allowed the writ petition and condoned the delay of 301 days in filing the appeal. The Court observed that although the Appellate Authority is bound by the limitation prescribed under Section 107 and lacks the power to condone delay beyond the statutory period, the High Court, while exercising its jurisdiction under Article 226 of the Constitution, possesses the power to grant appropriate relief in deserving cases. The Court noted that the Assessee had satisfactorily explained the reasons for the delay and that refusal to entertain the appeal would cause grave prejudice, particularly when cancellation of GST registration directly affects the Assessee 's ability to carry on business and earn a livelihood. Following its earlier decisions, the Court held that denial of an opportunity to contest the order on merits would defeat the object of the GST law, which seeks not only to secure revenue but also to facilitate trade and business. Accordingly, the appellate order rejecting the appeal on limitation was set aside, the delay was condoned, and the Appellate Authority was directed to hear and decide the appeal on merits.

BTA's COMMENT:

The judgment reiterates that while the statutory appellate authority cannot travel beyond the limitation prescribed under Section 107 of the GST Act, the constitutional jurisdiction of the High Court remains available to prevent miscarriage of justice in deserving cases. The Court recognised that cancellation of GST registration has serious civil consequences, including disruption of business and loss of livelihood, and therefore procedural limitations should not permanently deprive a taxpayer of the opportunity to challenge such orders where sufficient cause is shown. The decision provides relief to taxpayers whose appeals have been rejected solely on limitation despite genuine and bona fide reasons for the delay. At the same time, the ruling does not dilute the limitation prescribed under the GST law but underscores that constitutional courts may exercise their extraordinary jurisdiction where denial of the statutory remedy would result in manifest injustice.

Case Reference- Rameshwari Narpatram Bishnoi v. Union of India & Ors. [D.B. Civil Writ Petition No. 8884 of 2026, Rajasthan High Court, decided on 29 April 2026]

Author- Shristy Pathak

Edited by- Madhurima Bose