Delay in GST appeal condoned as illness of proprietor held sufficient cause; appellate authority directed to hear case on merits

Case Title: M/s. Annai Velanganni Industries vs. State Tax Officer & Anr.
Court: Madurai Bench of Madras High Court
Petition No.: W.P.(MD) No. 12079 of 2025 & W.M.P.(MD) Nos. 8899 & 8900 of 2025
Category of Dispute: Delay in filing GST appeal / Natural justice under Section 75(4)
Date of Judgment: 28 April 2025
Relevant Sections: Section 74, Section 75(4) of the TNGST Act, 2017

Facts (Paras 2–3)

The petitioner, M/s. Annai Velanganni Industries, engaged in manufacturing wooden products, faced an ex-parte GST assessment order dated 20.05.2024 under Section 74 of the TNGST Act. The petitioner argued that due to limited GST knowledge and reliance on a part-time accountant, they were unaware of the proceedings. The proprietor’s ill-health further prevented timely appeal filing. The appeal filed with a 192-day delay was rejected by the Appellate Deputy Commissioner (ST), Trichy Division, solely on limitation grounds.

Questions for Consideration

Whether the delay of 192 days in filing appeal before the Appellate Authority could be condoned, considering the proprietor’s ill-health as a reasonable cause for such delay, and whether the denial of appeal violated the principles of natural justice contemplated under Section 75(4) of the TNGST Act.

Observations (Paras 4–6)

Justice Vivek Kumar Singh observed that the delay arose solely from circumstances beyond the petitioner’s control, namely the ill-health of the proprietor. The Court noted that the Government Advocate fairly conceded that, if sufficient cause was shown, the delay may be condoned. The Court emphasized the need to afford an opportunity of hearing to taxpayers, as mandated under Section 75(4), to uphold the principles of natural justice.

Judgment (Paras 6–7)

The Court held that the petitioner had demonstrated a reasonable cause for the delay. Accordingly, the delay of 192 days in filing the appeal was condoned, and the appellate order dated 08.04.2025 was set aside. The Appellate Deputy Commissioner was directed to consider the appeal on merits, without reference to limitation, and pass a speaking order after granting a personal hearing.

Summary of Cases Referred

Between Fine Lines (Trade & Practice Perspective)

This judgment underscores that reasonable and genuine causes such as illness can justify condonation of delay in GST appeals. Taxpayers should document and communicate such circumstances promptly. It reinforces that justice must prevail over technicalities, and appellate authorities must focus on substantive adjudication rather than mere procedural compliance. The case highlights the protective scope of Section 75(4), ensuring personal hearing and fair opportunity before finalizing assessments.

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