Timelines under Section 107(4) WBGST Act are directory; natural justice violation leads to quashing assessment order

The HC allowed the writ petition, setting aside the impugned orders of the Appellate Authority and Proper Officer. It held that the timelines under Section 107(4) of the WBGST Act are directory, not mandatory, and the Limitation Act applies. The court found a violation of natural justice as the notice under Section 73(1) was improperly uploaded only under the Additional Tab, failing proper communication. The Proper Officer did not provide the assessee an opportunity of hearing as mandated by Sections 73(9) and 75(4). The delay in filing the appeal was condoned due to sufficient cause. The restrictive scope of intra-court appeal was rejected since the Single Judge erred in strictly interpreting timelines while ignoring mandatory procedural safeguards. The petition was allowed, and the assessment order was quashed for failure to comply with statutory and natural justice requirements.

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ISSUES:

Whether the timelines stipulated under Section 107(1) and Section 107(4) of the West Bengal Goods and Services Tax Act, 2017 ("WBGST Act") for preferring an appeal are mandatory or directory.Whether the Appellate Authority and the writ court have the power to condone delay beyond the statutory period prescribed under Section 107 of the WBGST Act.Whether the delay in preferring the appeal in the present case ought to have been condoned on the facts, including medical grounds and difficulty in accessing the notice.Whether the communication of the assessment order by uploading it only on the "Additional Tab" of the GST Portal constitutes proper service or communication under Section 73(1) of the WBGST Act and the Rules framed thereunder.Whether the fixing of a personal hearing date prior to the date for filing reply to the Show Cause Notice violates the principles of natural justice and vitiates the assessment order.Whether the Proper Officer failed to comply with the statutory mandate under Sections 73(9) and 75(4) of the WBGST Act to consider the representation and grant an opportunity of hearing when an adverse decision was contemplated.Whether the writ court can interfere with the order of the Appellate Authority dismissing the appeal on limitation grounds where there is a violation of natural justice or patent illegality.

RULINGS / HOLDINGS:

The timelines stipulated in Section 107(1) and Section 107(4) of the WBGST Act are not mandatory but directory, as Section 107(4) does not contain mandatory or negative language debarring appeals beyond the period, unlike Section 107(6). Therefore, the provisions of the Limitation Act apply.The Appellate Authority and the writ court do have the power to condone delay beyond the statutory period if sufficient cause is shown, consistent with the ratio in S.K. Chakraborty and Sons v. Union of India, which remains binding despite a stay order on operation between parties.On the facts, the delay in preferring the appeal was justified by medical grounds affecting both active partners and difficulty in accessing the notice on the GST Portal's Additional Tab, thus the delay ought to have been condoned.Uploading the assessment order only on the Additional Tab of the GST Portal does not constitute proper communication under Section 73(1) of the WBGST Act, as the Additional Tab is less accessible and not clearly explained, leading to a failure in proper service.Fixing the date of personal hearing prior to the date for filing the reply to the Show Cause Notice is an irregularity that vitiates the assessment order, since a hearing must be given on the basis of the representation; a hearing before the representation is illusory and violates the principle of Audi Alteram Partem.The Proper Officer failed to comply with the statutory mandate under Sections 73(9) and 75(4) by not granting an opportunity of hearing on the representation and by proceeding ex parte, thereby violating natural justice and vitiating the assessment order.The writ court may interfere by issuing writs such as certiorari or mandamus where there is a patent miscarriage of justice or violation of natural justice principles, even if the appeal is dismissed on limitation grounds.

RATIONALE:

The Court applied the statutory framework of the WBGST Act, particularly Section 107 (appeal provisions), Section 73 (assessment and notice provisions), and Section 75 (general provisions relating to determination of tax and hearing), alongside the Limitation Act, 1963.Interpretation of Section 107(4) was guided by internal aids, contrasting the language of subsections (4) and (6), and external aids by analogy to the West Bengal Premises Tenancy Act, 1997, establishing that absence of explicit mandatory language means timelines are directory.Section 29(2) of the Limitation Act was invoked to determine that special or local laws exclude the Limitation Act only if expressly stated, which is absent in Section 107(4) of the WBGST Act.The Court emphasized the principle of strict interpretation of taxing statutes but distinguished that while timelines may be interpreted strictly, procedural safeguards such as opportunity of hearing and proper communication are mandatory and must be strictly complied with.The Court relied on the principle of natural justice, Audi Alteram Partem, as embodied in Sections 73(9) and 75(4), requiring that a hearing be given on the basis of the representation, and that an adverse order cannot be passed without such hearing.Precedents from various High Courts were considered regarding accessibility issues of the Additional Tab on the GST Portal and the resulting failure of proper service of notices.The Court noted the inconsistency in the impugned order where strictness was applied to limitation timelines but leniency was shown towards procedural non-compliance in service and hearing, which was held to be erroneous.The judgment reaffirmed the power of the writ court to intervene in cases of violation of natural justice or patent illegality notwithstanding limitation bars, citing established Supreme Court precedent.

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