Court Overrules Dismissal of Appeal Due to Delay, Orders Reconsideration Under CGST Act for Fairness and Justice.

The HC set aside the appellate authority's dismissal of the petitioner's appeal due to a delay, which exceeded statutory limits under Section 107 of the CGST Act. The court directed the appellate authority to reconsider the appeal, allowing the petitioner to submit additional documents as per Rule 107, emphasizing the authority's discretion to condone delays and ensure compliance with principles of natural justice. The matter was remanded for fresh consideration, and the writ petition was disposed of accordingly.

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Issues:
1. Rejection of refund claim by respondent no. 2
2. Dismissal of appeal on the ground of delay
3. Compliance with principles of natural justice
4. Condonation of delay in filing appeal
5. Power of appellate authority to accept additional documents

Analysis:
1. The petitioner challenged the rejection of the refund claim by respondent no. 2, which was based on the ground of non-submission of documents. The petitioner contended that he was not informed of the rejection and never received a show cause notice, alleging a violation of principles of natural justice.

2. The appeal filed by the petitioner was dismissed by the appellate authority citing a delay of 7 months, exceeding the statutory period of three months for filing an appeal under Section 107 of the CGST Act. The respondent argued that the delay was unjustified and not condonable beyond the permissible one-month extension.

3. The petitioner argued that the delay in filing the appeal was due to lack of knowledge about the rejection order until 12.08.2020. The court considered the latest judgments of the Hon'ble Calcutta High Court, establishing that the appellate authority has the power to condone delays beyond 120 days.

4. The court held that the appellate authority should have condoned the delay in filing the appeal, as per the settled position of law. Referring to a previous judgment, the court emphasized the authority's discretion to accept additional documents under Rule 107 of the CGST Act in certain circumstances.

5. Consequently, the court set aside the order of dismissal dated 24.09.2021 and remanded the matter back to the appellate authority for fresh consideration. The appellate authority was directed to allow the petitioner to submit additional documents, which would be evaluated in accordance with Rule 107 of the CGST Act. The writ petition was disposed of with these directions.

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