The Rajasthan High Court has permitted M/s Bhagwati Industries to file a delayed statutory appeal against a GST adjudication order raising a demand of ₹79,85,472. The Division Bench held that, although the Appellate Authority is bound by the limitation prescribed under Section 107 of the RGST/CGST Act, refusal to examine the appeal on merits would cause grave injury and prejudice where the delay arose from circumstances beyond the taxpayer’s control.
Case Details
Case: M/s Bhagwati Industries v. Union of India & Ors.
Court: High Court of Judicature for Rajasthan, Jaipur Bench
Bench: Justice Arun Monga and Justice Ashutosh Kumar
Case Number: D.B. Civil Writ Petition No. 11651/2026
Neutral Citation: 2026:RJ-JP:27636-DB
Date of Order: 20 July 2026
The petitioner challenged the inability to file an appeal against an Order-in-Original dated 28 November 2025 concerning Financial Years 2018-19 and 2023-24. The adjudication order had raised a GST demand of ₹79,85,472 for alleged non-payment of tax under the Reverse Charge Mechanism on royalty, DMET and RMSET/NMET expenses. The GST portal reflected that the proposed appeal was time-barred, leaving the petitioner unable to place the dispute before the Appellate Authority.
The petitioner attributed the delay to lack of familiarity with the GST portal, appellate procedure and technical provisions of GST law. It was also submitted that the adjudication order had merely been uploaded on the portal and was not otherwise brought to the petitioner’s notice. The petitioner further stated that the business had remained closed since 2024, had nil turnover and that GST compliances were handled through the Chartered Accountant and accountant.
The Rajasthan High Court noted that the Appellate Authority itself remained bound by the statutory limitation contained in Section 107. However, after considering the reasons placed on record, the Court found that the petitioner had shown circumstances beyond its control and that non-adjudication of the appeal on merits would result in serious prejudice.
The Court followed its consistent approach in earlier Division Bench decisions where delayed GST appeals were directed to be entertained on merits. Accordingly, the writ petition was allowed to the extent of condoning the delay in filing the statutory appeal.
The Appellate Authority was directed to entertain and decide the petitioner’s appeal on merits, provided the appeal is filed within 30 days from the date on which the High Court’s order was uploaded on its website.
The petitioner had also challenged the validity of Section 107(4) of the CGST Act. However, in view of the relief granted, that constitutional challenge was not pressed. The Court expressly left the issue regarding the validity of the provision open for determination in appropriate future proceedings.
Key Legal Principle
The judgment recognises that while the GST Appellate Authority cannot travel beyond the limitation prescribed under Section 107, the High Court may exercise its writ jurisdiction in appropriate cases to prevent grave prejudice and enable adjudication on merits where sufficient reasons demonstrate that the delay occurred due to circumstances beyond the taxpayer’s control.
Why This Judgment Matters
The decision is relevant for advocates, Chartered Accountants, GST practitioners, tax consultants, corporate tax teams and businesses dealing with appellate limitation under GST law. It highlights the distinction between the restricted statutory power of the Appellate Authority and the constitutional jurisdiction of the High Court to grant relief in exceptional circumstances. At the same time, the order does not lay down that delay must be condoned in every case; relief remains dependent upon the facts and reasons established by the taxpayer.