High Court Condones Appeal Delay in GSTR‑1 vs GSTR‑3B Mismatch and E‑Way Bill Dispute; Orders Fresh Hearing
High Court Condones Appeal Delay in GSTR‑1 vs GSTR‑3B Mismatch and E‑Way Bill Dispute; Orders Fresh Hearing
The Madras High Court granted relief to Bullmenn Motors, a partnership firm, by condoning a 70-day delay in filing an appeal under Section 107 of the Tamil Nadu Goods and Services Tax Act, 2017.
During the scrutiny of the ITR filed by the petitioner for Assessment Year 2019-20, the GST department found mismatches in their GSTR‑1 and GSTR‑3B, GSTR-3B and GSTR‑2A, the generation of the e-way bill, and the delayed filing of Form GSTR‑3B returns. Due to these mismatches, the GST department issued a notice in Form GST DRC-01A. Even after Bullmenn Motors replied, the tax officer passed a notice again demanding tax and interest under Section 74 of the TNGST Act.
The tax officer partially accepted the petitioner’s reply, but still he imposed a penalty of Rs 5,82,430 for not generating an e-way bill. Due to which the company filed an appeal dated 16.06.2025 under Section 107 of the TNGST Act to the GST appellate. However, the same was rejected due to a delay in submitting the appeal. The company claimed it could not file the appeal on time because the managing partner of the company was undergoing medical treatment, and the company came to know about the notice after getting a call from the GST department. The company filed the reply after the managing partner had recovered. Since the appeal was rejected by the GST appellate, the petitioner approached the High Court of Madras to condone the delay of 70 days in filing the appeal.
The Madras High Court observed that the delay was genuine because it involved medical reasons. Therefore, the court condoned the 70 days delay and the appeal is restored on the condition that the company must pay Rs 10,000 to the Principal Government Naturopathy Medical College and Hospital, Chennai within two weeks and after showing proof of payment to the GST Appellate, the company’s appeal must be considered by the GST Appellate in accordance with the law.