In a crucial ruling impacting GST litigation and appellate strategy, the High Court of Gujarat, in its recent decision in M/s Tapi Ready Plast v. State of Gujarat & Ors., has once again clarified that statutory timelines under Section 107 of the GST Act are mandatory and inflexible.
The Court was dealing with a case where a taxpayer challenged the rejection of its GST appeal on the ground of delay. The appeal had been filed beyond the maximum condonable period of 120 days (three months plus one additional month) prescribed under Section 107 of the GST Act, leading to dismissal at the appellate stage.
Rejecting the writ petition, the High Court held that once the outer statutory limitation expires, the Appellate Authority becomes functus officio and has no jurisdiction to entertain the appeal. The Court further observed that Article 226 of the Constitution cannot be invoked to override clear legislative intent, particularly in matters governed by a special statute like the GST Act.
While arriving at this conclusion, the Court relied on binding Supreme Court precedents on limitation and condonation of delay under special enactments, reaffirming that:
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Section 5 of the Limitation Act, 1963 does not apply to GST appeals
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High Courts cannot grant relief inconsistent with statutory limitation
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Reasons such as illness of staff, business closure, or financial difficulties do not justify condonation beyond the prescribed limit
This judgment serves as a strong reminder that GST appeal timelines are strict deadlines, not procedural guidelines. Taxpayers and professionals must act promptly upon receipt of adverse orders, as delays beyond the statutory cap can permanently foreclose appellate remedies.