HC Condoned Delay in GST Appeal for ITC Dispute

Case Details: Vishal Durgadas Jaiwant vs. Joint Commissioner of Commercial Taxes (Appeals) [2026] 183 taxmann.com 665 (Karnataka)

Judiciary and Counsel Details

• Mrs K.S. Hemalekha, J.
• S.G. Solargoppa, Adv. for the Petitioner.
• Praveen K. Uppar, AGA for the Respondent.

Facts of the Case

The petitioner challenged the rejection of his appeal against the denial of Input Tax Credit (ITC) arising from a mismatch caused by the supplier’s failure to upload the relevant invoice in GSTR-1. It was submitted that ITC had been availed based on the supplier’s invoice. He contended that, due to a bona fide belief that the supplier would rectify the error and a lack of awareness and assistance regarding the limitation period, the appeal could not be filed within time. The petitioner, therefore, sought condonation of the delay and adjudication of the appeal on the merits. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the explanation furnished by the petitioner disclosed a bona fide belief and reasonable cause for the delay. The Court observed that the dispute arose from an assessment under Section 73 of the CGST Act and that the appeals filed under Section 107 of the CGST Act and the Karnataka GST Act required consideration on the merits. It further noted that instructions issued under Section 168 were relevant in cases of ITC mismatch due to supplier non-reporting. Accordingly, the Court set aside the order rejecting the appeal as time-barred and directed that the appeal be treated as filed within time and decided on the merits.

List of Cases Referred to

• Wipro Ltd. v. Asstt. Commissioner of Central Taxes [2023] 148 taxmann.com 216/97 GST 319/72 GSTL 325 (Karnataka) (para 4)
• Kolapudi Enoch Washington v. Additional Commissioner (GST & Central Tax) [2022] 145 taxmann.com 268/69 GSTL 177/96 GST 91 (Karnataka) (para 4)
• Nagson and Co. v. Joint Commissioner Of Central Tax (Appeals-II) 2022 KHC 38176 (para 4).