2025 (2) TMI 790 - HC - GST

Appellate Authority can condone delay beyond one month under Section 5 of Limitation Act; appeal allowed to proceed

HC held the Appellate Authority is competent to condone delay beyond one month by applying Section 5 of the Limitation Act. The appeal had been dismissed ... Power of Appellate Authority to condone the delay in filing an appeal beyond one month of the prescribed period under Section 107 of the West Bengal Goods and Service Tax Act, 2017 - HELD THAT:- Admittedly in this case, it would appear that the appeal had been dismissed solely on the ground that the same had been filed beyond one month of the time prescribed for filing the appeal. The appeal therefore, was obviously barred by limitation. However, at the same time, the aforesaid could not prevent the petitioner from maintaining an application for condonation of delay by invoking the provisions of Section 5 of the Limitation Act, 1963. The issue whether the Appellate Authority is competent to condone the delay beyond one month from the prescribed period for filing of an appeal has already been conclusively decided by the Hon’ble Division Bench of this Court in the case of S. K. Chakraborty & Sons Vs. Union of India [2023 (12) TMI 290 - CALCUTTA HIGH COURT]. The Appellate Authority ought to have taken note of the explanation given in the application for condonation of delay under Section 5 of the Limitation Act, 1963. Taking note of the fact that no fruitful purpose will be served by remanding the aforesaid matter on the issue of condonation of delay to the Appellate Authority and also considering the explanation given by the petitioner, the petitioner has been able to sufficiently explain the delay in filing the appeal belatedly. The writ petition is disposed of. ISSUES PRESENTED and CONSIDERED:- Whether the Appellate Authority had the power to condone the delay in filing an appeal beyond one month of the prescribed period under Section 107 of the West Bengal Goods and Service Tax Act, 2017.ISSUE-WISE DETAILED ANALYSIS:The petitioner filed a writ petition challenging the rejection of their appeal under Section 107 of the West Bengal Goods and Service Tax Act, 2017. The appeal was rejected on the grounds of being filed beyond the prescribed time limit, with a delay of 42 days. The Appellate Authority relied on the proviso to subsection (4) of Section 107, stating that it lacked the power to allow the appeal beyond one month after the prescribed time for filing the appeal. The petitioner argued that they had a statutory right to appeal and seek condonation of delay, invoking Section 5 of the Limitation Act, 1963.The Court considered the precedent set by the Hon'ble Division Bench in the case of S. K. Chakraborty & Sons Vs. Union of India, which established the Appellate Authority's competence to condone delays beyond the prescribed period. The Court noted that while the appeal was time-barred, the petitioner had provided a reasonable explanation for the delay. Consequently, the Court set aside the rejection of the appeal and directed the Appellate Authority to hear the appeal on its merits within two months.SIGNIFICANT HOLDINGS:The Court held that the Appellate Authority had the power to condone delays in filing appeals beyond the prescribed period under Section 107 of the Act. The Court emphasized the importance of considering explanations for delays and restored the appeal for further proceedings based on the petitioner's explanation.The core principle established was that statutory rights to appeal should be upheld, and delays in filing appeals can be condoned under the appropriate legal provisions. The final determination was to set aside the rejection of the appeal and instruct the Appellate Authority to hear the appeal on its merits within a specified timeframe.