GST Authority Rejects ITC Appeal for Delay Beyond Condonable Period; Madras HC Grants Condonation of Delay

The Madras High Court has condoned the delay in a GST case that comprises of mismatch in Input Tax Credit ( ITC ) in GSTR 3B and GSTR 2A. On the foundation that the delay was beyond the condonable period, the appeal was rejected

An order was contested by the appeal on July 12, 2024, from the first respondent- The appeal of the applicant was rejected by the Deputy Commissioner (FAC), GST appeal based on the thing that it was submitted late and that the Tamil Nadu Goods & Services Tax Act ( TNGST ), 2017, does not furnish for condonation of such delays.

The applicant, Tvl. CANPLY had challenged an assessment order on December 22, 2023, which levied a tax liability of Rs. 54,03,412, including penalties, because of the mismatch between GSTR-3B and ITC auto-populated in the GSTR-2A form.

However, on May 2, 2024, the applicant furnished the appeal including a delay condonation petition, and the Deputy Commissioner (FAC) dismissed it on the foundations of surpassing the statutory limitation period.

It was claimed by the special government pleader that the limitation to file the appeal has lapsed on March 22, 2024, with an additional month of showing enough cause ending dated April 22, 2024. As the appeal was submitted after the filing time was over, the first respondent rejected the same.

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It was decided by the Madras HC that while the first respondent remarked on the absence of a provision of delay condonation, the situation warranted a reconsideration. Justice N.

Anand Venkatesh remarked that the applicant had incurred a 10% pre-deposit and did not furnish a chance to address the problems to the assessment order was finalized.

The bench has set aside the challenged GST order. It condoned the delay in appeal filing and asked the department to accept the plea, issue a notice, furnish an opportunity for a personal hearing, and issue a final order within 3 months.

Mr G. Derrick Sam appeared for the petitioner and Mr G.Nanmaran, SGP appeared for the department.