2025 (2) TMI 550 - HC - GST

Writ Petition Succeeds: Delay in GST Appeal Condoned by HC, Emphasizing Fair Consideration for Small Firms

Kamala Stores & Anr. Versus The State of West Bengal & Ors.

The HC of Calcutta addressed a writ petition challenging the rejection of an appeal by the appellate authority under the GST Act, 2017, due to a 79-day ... Condonation of delay in filing appeal - Rejection of petitioner's appeal on the ground that the same was barred by limitation - whether appellate authority is competent only to condone the delay provided the appeal is filed within the period of one month beyond the time prescribed? - HELD THAT:- Taking into consideration that the petitioners are a small partnership firm and there is no lack of bona fide on the part of the petitioners and one do not stand to gain by filing a belated appeal, I am of the view that in the instant case, the appellate authority ought to have appropriately considered the application for condonation of delay filed by the petitioners. The appellate authority, however, appears to have rejected the appeal on the ground of limitation by, inter alia, holding that the delay can only be condoned provided the same is filed within the period of one month of the time prescribed. The aforesaid observation made by the appellate authority runs counter to the observation made by the Hon’ble Division Bench of this Court in the case of S. K. Chakraborty & Sons v. union of India & Ors. [2023 (12) TMI 290 - CALCUTTA HIGH COURT]. The delay in preferring the appeal is condoned - The appellate authority is directed to hear and dispose of the appeal, on merit, upon giving an opportunity of hearing to the petitioners, within a period of eight weeks from the date of communication of this order. Conclusion - The appellate authority had failed to exercise the jurisdiction vested in it. Having regard to the above and taking note of the explanation given by the petitioners while setting aside the appellate order dated 18th September, 2024, the delay in preferring the appeal is condoned. Petition disposed off. The Calcutta High Court considered a writ petition challenging the rejection of an appeal by the appellate authority under the Central/West Bengal Goods and Services Tax Act, 2017, on the grounds of limitation. The petitioners had filed an appeal against an order passed under Section 73(9) of the said Act, along with a pre-deposit of Rs.96,452, but there was a delay of 79 days in filing the appeal. The petitioners explained the delay by citing a lack of proper knowledge of the GST portal.The Court noted that there was no lack of bona fide on the part of the petitioners in filing the appeal and that they were a small partnership firm. The Court held that the appellate authority should have considered the application for condonation of delay, especially considering the explanation provided by the petitioners. The appellate authority had rejected the appeal based on the ground that delay can only be condoned if filed within one month of the prescribed time, which was contrary to a previous decision of the Hon'ble Division Bench of the Court.In light of the above, the Court found that the appellate authority had failed to exercise its jurisdiction properly and, therefore, condoned the delay in preferring the appeal. The Court directed the appellate authority to hear and dispose of the appeal on its merits within eight weeks from the date of the order.The significant holdings in this judgment include the Court's emphasis on the need for the appellate authority to consider applications for condonation of delay in a reasonable manner, especially when there is no lack of bona fide on the part of the appellants. The Court also highlighted the importance of following established legal precedents in making decisions regarding the condonation of delay in filing appeals.In conclusion, the Court disposed of the writ petition with directions to the appellate authority to hear and decide the appeal on its merits within a specified timeframe, without imposing any costs on the parties involved. All parties were instructed to act in accordance with the official copy of the order downloaded from the Court's website.