High Court Revives GST Appeal by Examining Petitioner's Good Faith, Mandates Rs. 25,000 Cost and Two-Week Compliance Window

HC allowed writ petition challenging GST appeal rejection, setting aside appellate authority's order. Despite finding delay explanation insufficient, court considered petitioner's bona fide intentions and pre-deposit. Directed petitioner to pay Rs. 25,000 cost and file delay condonation application within two weeks, with warning of dismissal if non-compliant.

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Issues:
Challenge to order under Section 107 of CGST/WBGST Act, 2017 for delay in filing appeal, explanation for belated appeal, consideration of bona fide, setting aside order, payment of cost, condonation of delay, compliance with directions.

Analysis:
The writ petition was filed to challenge an order dated 15th March, 2024, passed by the appellate authority under Section 107 of the CGST/WBGST Act, 2017. The petitioner had earlier filed an appeal against an order dated 14th August, 2023, under Section 73 (9) of the said Act, along with a pre-deposit as required under Section 107 (6). However, the appeal was filed beyond the prescribed time, leading to its rejection due to lack of explanation for the delay.

The petitioner argued that the delay was due to the accountant's oversight and requested not to reject the appeal on technical grounds, emphasizing the merits of the case. On the other hand, the respondents contended that the appeal was belated with no proper explanation for condonation of delay, supporting the appellate authority's decision to reject the appeal based on limitation grounds.

After hearing both parties and examining the facts, the court noted the pre-deposit made by the petitioner, indicating bona fide intentions. Despite finding the explanation for the delay inadequate, the court considered the possibility of merit in the appeal and set aside the order dated 15th March, 2024, subject to the petitioner paying a cost of Rs. 25,000 to the GST authorities.

The court directed the petitioner to make the payment within two weeks, along with filing an application for condonation of delay before the appellate authority. Failure to comply would result in the dismissal of the writ petition without further reference to the petitioner. The court emphasized the peremptory nature of the direction and disposed of the writ petition with no order as to costs, providing for the issuance of a certified copy of the order upon compliance with formalities.

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