Petition Withdrawn to Avail GST Appeal Remedy under Section 107

Case Title: Rays Power Infra Limited v. Union of India & Ors.
Court: High Court of Gujarat at Ahmedabad
Petition No.: Special Civil Application No. 4487 of 2025
Relevant Section: Section 107 of the CGST Act, 2017
Category of Dispute: GST Appeal Procedure / Alternative Remedy
Date of Judgement: 08 April 2025
Coram: Hon’ble Mr. Justice Bhargav D. Karia & Hon’ble Mr. Justice D.N. Ray

Facts of the Case (¶1–2)

• The petitioner, Rays Power Infra Limited, approached the Gujarat High Court challenging an Order-in-Original under GST.

• During the hearing, petitioner’s counsel, under instruction, sought permission to withdraw the petition to pursue the appellate remedy under Section 107 of the CGST Act before the appellate authority.

• Petitioner requested the Court to treat the time spent before the High Court as bona fide to avoid any issue of delay in filing the appeal.

Question(s) in Consideration (¶2)

• Whether the petitioner should be allowed to withdraw the writ petition to avail alternate appellate remedy under Section 107 of the CGST Act.

• Whether the time spent before the High Court may be treated as bona fide for condonation of delay in appeal.

Observations of the Court (¶3)

• The Court did not enter into the merits of the case.

• It permitted the withdrawal of the writ petition with liberty to the petitioner to file an appeal before the appellate authority within two weeks.

• The Court directed the appellate authority to treat the time spent before the High Court as bona fide while assessing any delay.

Judgement of the Court (¶3)

• The petition was disposed of as not pressed.

• The petitioner was granted liberty to file appeal under Section 107 of CGST Act within two weeks.

• The appellate authority was instructed to consider the time spent before the High Court as bona fide for the purpose of limitation.

Between Fine Lines:

• If a taxpayer approaches the High Court instead of the appellate authority, they can still pursue appeal if done in good faith.

• Time spent before High Court will not prejudice delay if the appeal is filed promptly.

• Section 107 provides an efficacious appellate remedy in GST matters.

• Courts encourage use of statutory appeal routes before invoking writ jurisdiction.

• Strategic withdrawal of writs can safeguard limitation period for appeals.

Summary of Referred Cases:

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