Court Quashes Appellate Authority's Order, Emphasizes Fairness Over Procedural Technicalities
In a significant judgment, the Rajasthan High Court has set aside the order of the State Tax Appellate Authority, Jodhpur, which dismissed the appeal filed by M/s Akash Construction as time-barred. The court remanded the case back to the Appellate Authority for reconsideration, highlighting the importance of substantive justice over procedural technicalities.
The division bench, comprising Dr. Pushpendra Singh Bhati and Sanjeet Purohit, observed that while the Rajasthan Goods and Services Tax Act, 2017 allows for deemed service of orders through the GST portal, this provision cannot be applied mechanically at the stage of condoning delays. The court underscored the discretionary power of the Appellate Authority under Section 107(4) of the Act to judiciously evaluate explanations for any delay.
The case arose when M/s Akash Construction, a partnership firm involved in construction, faced a demand of Rs. 65,19,288 due to alleged excess utilization of Input Tax Credit. The firm claimed it was unaware of the adjudication order until recovery proceedings were initiated, prompting an appeal that was dismissed by the Appellate Authority for being time-barred without addressing the delay's explanation.
The High Court noted that while the statutory framework mandates strict adherence to timelines, it also provides room for condoning delays based on sufficient cause. The court found the Appellate Authority's failure to consider the petitioner's explanation as a critical oversight that vitiated the impugned order. It emphasized that denying appellate scrutiny on procedural grounds infringes the firm's rights under Articles 14, 19(1)(g), and 21 of the Constitution, affecting its business operations and livelihoods.
The judgment reaffirmed that fiscal statutes should not prioritize procedural rigidity over substantive justice, especially when the law itself offers a mechanism for condonation. The court directed the Appellate Authority to reassess the appeal, considering the delay explanation on its merits and ensuring a fair hearing for the petitioner.
Bottom Line:
Rajasthan Goods and Services Tax Act, 2017 - Doctrine of deemed service through upload on GST portal cannot be applied mechanically, especially when discretion for condonation of delay exists under Section 107(4) - Appellate Authority obligated to judiciously consider explanation for delay - Procedural technicalities should not override substantive justice.
Statutory provision(s): Rajasthan Goods and Services Tax Act, 2017 Sections 107(4), 75(4), 75(5), and Constitution of India Articles 14, 19(1)(g), 21
M/s Akash Construction v. State of Rajasthan, (Rajasthan)(DB) : Law Finder Doc Id # 2826972
