Appellate Authority Directed to Decide Delayed Appeal on Merits as There Was No Lack of Bona Fide on Part of Assessee | HC
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- Last Updated on 6 March, 2025
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Case Details: Kamala Stores vs. State of West Bengal - [2025] 171 taxmann.com 514 (Calcutta)
Judiciary and Counsel Details
- Rajarshi Bharadwaj, J.
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Himangshu Kumar Ray, Sushant Bagaria & Subhasis Podder for the Petitioner.
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Md. T. M. Siddiqui, Ms S. Shaw, T. Chakraborty & S. Sanyal, for the Respondent.
Facts of the Case
The assessee, a small partnership firm, filed an appeal before the appellate authority under Section 107 of the CGST Act, 2017, challenging an order passed under Section 73(9) of the CGST Act for the period July 2017 to March 2018. In compliance with statutory requirements, the assessee made a pre-deposit of Rs. 96,452 at the time of filing the appeal. However, due to a delay of 79 days, the assessee also submitted an application seeking condonation of delay, citing lack of proper knowledge of the GST portal as the reason for the delay. The appellate authority dismissed the appeal, holding that the delay exceeded the one-month discretionary period permissible under Section 107(4) and was therefore barred by limitation. Aggrieved by this decision, the assessee filed a writ petition before the Calcutta High Court challenging the rejection of its appeal.
High Court Held
The Hon’ble Calcutta High Court held that the appellate authority erred in rejecting the appeal solely on limitation grounds without appropriately considering the assessee’s bona fide reasons for the delay. The court observed that the assessee had acted in good faith by filing the pre-deposit and seeking condonation of delay, demonstrating a genuine intent to pursue the appeal. Given that the assessee was a small partnership firm, the appellate authority ought to have exercised discretion judiciously. Accordingly, the court directed the appellate authority to hear and decide the appeal on its merits, ensuring that the assessee is provided with an opportunity of hearing.
List of Cases Reviewed
- S. K. Chakraborty & Sons v. Union of India & Ors., 2023 SCC Online Cal 4759, relied on.
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