Karnataka High Court condones Goods and Services Tax appeal delay exceeding 120 days due to unserved notices

The Karnataka High Court condoned a delay in filing a Goods and Services Tax statutory appeal that extended beyond the outer limit of 120 days. The petitioner approached the high court after appellate authorities refused to entertain the tax appeal due to strict statutory time-bar provisions under the Goods and Services Tax enactment. The court examined the record and established that the primary adjudication order creating the tax demand was never legally served on the taxpayer, thereby depriving them of the opportunity to file an appeal within the prescribed limitation period.

Statutory appeal mechanisms under indirect tax laws prescribe strict timelines, typically allowing an initial period extendable by a further condonable period up to a maximum of 120 days. The traditional administrative stance often rejected any appeal filed past this absolute ceiling regardless of systemic failures in serving orders. The legal position established by this ruling ensures that limitation clocks start ticking only upon valid service of the order, and procedural lapses by the department cannot prejudice a taxpayer's right to appeal.

Tax practitioners and legal counsel handling delayed Goods and Services Tax filings must verify the exact mode and date of service of adjudication orders on the portal or via physical dispatch. If service is found defective, writ petitions should be filed before the high court to seek condonation of delay beyond statutory appellate limits. Bottom line: procedural failures in serving tax orders enable taxpayers to bypass rigid appeal limitation deadlines.