Appellate Authority Must Consider Grounds for Condoning Delay Before Rejecting Appeal: Allahabad High Court

In two cases, the Allahabad High Court condoned delays of 148 and 289 days on ₹5,000 costs each, after the appellate authorities rejected the appeals without examining the reasons given.

The Allahabad High Court has held that an appellate authority must consider the grounds raised for condonation of delay, whether or not they are ultimately accepted, and cannot reject a GST appeal without examining them. [Aarna Enterprises v. Additional Commissioner and Another, 2026-juristway.com-3150-HC(Allahabad)-GST; Ajanta Hardware v. State of U.P. & Ors., 2026-juristway.com-3154-HC(Allahabad)-GST]

Justice Vikas Budhwar decided both writ petitions at the first hearing, with the consent of the parties and on the Standing Counsel’s acceptance that the appeals be heard on merits subject to conditions.

Aarna Enterprises. A Section 73 demand of ₹10,30,248 was passed on 23 Jul 2024 after notices were uploaded under the additional notices tab. The appeal was filed with a delay of 148 days, explaining that the e-mail ID on the portal belonged to a former accountant. The appellate authority rejected it on 5 May 2025 on the time limit alone. The Court found that none of the reasons had been considered.

Ajanta Hardware. A penalty order under Section 129(3) dated 16 Apr 2025 was appealed with a delay of 289 days, attributed to the former accountant’s failure to advise on limitation. The appellate authority rejected the appeal on 23 May 2026, holding that Section 107 did not permit condonation, without addressing the grounds. The Court held that a ground, “whether tenable or untenable”, must be considered in the correct perspective.

In both cases the Court set aside the appellate order, condoned the delay and directed the appeal to be decided on merits within three months. The relief depends on the petitioner depositing ₹5,000 by 6 Nov 2026, and in Aarna Enterprises it will also lapse if unnecessary adjournments are taken. The Court expressed no view on merits.

2026-juristway.com-3150-HC(Allahabad)-GST | 2026-juristway.com-3154-HC(Allahabad)-GST