Delhi High Court Condones Company's Delay In Filing GST Appeal On Ground Of Director's Illness

The Delhi High Court recently condoned the delay made by a company in challenging the GST demand of over ₹75 lakhs, on grounds of illness of its Director.

A division bench of Justices Prathiba M. Singh and Shail Jain, after considering the facts of the case and on the basis of the medical records, were of the view that the lapse was “bonafide”.

As per Section 107 of the Central Goods and Services Tax Act 2017, an appeal before the Appellate Authority has to be filed within three months from the date of communication of the disputed order. Further, the Appellate Authority may condone a delay of up to one month if they are satisfied that there was a sufficient cause for such delay.

In the case at hand, the Show Cause Notice was issued to the Petitioner on 24th May, 2024. Thereafter, a reminder notice dated 8th August, 2024 was issued to appear for personal hearing. However, the Petitioner did not respond or appear, leading to confirmation of demand on 16th August, 2024.

In terms of Section 107, the appeal ought to have been filed within a maximum of four months but the Petitioner claimed it became aware of the demand only in May, 2025. The reason for the delay was stated to be the medical condition of one of its directors, who was looking after the affairs of the company.

The High Court found that the director had been sick since August, 2022. As such, it condoned the delay and permitted the Petitioner to challenge the demand order by 10th January, 2026.

Appearance: Mr. Rajesh Mahna, Mr. Ramanand Roy, Ms. Silky Wadhwa, Mr. Mayank Kouts, Advs. for Petitioner; Ms. Urvi Mohan, GNCTD. Mr. Niraj Kumar, Senior Central Govt. Counsel, Mr. Chaitanya, Adv. for R-1/UOI.

Case title: Ping Pong Global Limited Through Its Managing Director Siddhartha Jain v. Union Of India Through Joint Secretary & Ors.

Citation: 2025 LiveLaw (Del) 1620

Case no.: W.P.(C) 16974/2025

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