Condonation of delay in GST appeal: limitation rejection set aside, with delay application to be decided before merits.

The Calcutta HC addressed whether rejection of a GST statutory appeal on limitation was sustainable where the delay was only 19 days and a pre-deposit had been made. The Court noted the appellant was a small businessman, found no lack of bona fides, and observed that no advantage could be gained by filing a belated appeal. On that basis, the limitation-based rejection was held unsustainable. The appellate authority was directed to consider the application for condonation of delay first, and, if delay was condoned, to hear and decide the appeal on merits.

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Issues: Whether the rejection of the statutory appeal on limitation was liable to be quashed and the appellant permitted to seek condonation of delay before the appeal was considered on merits.

Analysis: The appeal had been filed against an order passed under Section 73(9) of the Central Goods and Services Tax Act, 2017, and a pre-deposit had also been made. The delay was stated to be only 19 days. The Court accepted that the appellant was a small businessman, that there was no lack of bona fides, and that no advantage could be gained by filing a belated appeal. In these circumstances, the appellate rejection on limitation was found unsustainable, and the matter was directed to be considered first on the question of condonation of delay and thereafter, if condoned, on merits after hearing the appellant.

Conclusion: The order rejecting the appeal on limitation was quashed, and the appellate authority was directed to entertain and decide the application for condonation of delay, followed by adjudication on merits if the delay was condoned.

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