The Calcutta High Court condoned the 66 days delay in filing the Goods and service Tax ( GST ) appeal by a small businessman due to lack of proper knowledge of the GST portal. Further directed the appellate authority to hear out and dispose of the appeal, on merit, upon giving an opportunity of hearing to the petitioner.
The petitioner , Sukanta Pal V challenged the order passed by the appellate authority under Section 107 of the Central/West Bengal Goods and Services Tax Act, 2017 (CGST Act”), whereby the petitioner’s appeal had been rejected on the ground that the same was barred by limitation. The facts are not in dispute.
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A proceeding initiated under Section 73 of the said Act, for the tax period July, 2017 to March, 2018 an order under Section 73(9) of the said Act was passed on 31st October, 2023. Although, the petitioner had preferred an appeal from the aforesaid order and simultaneously, with the filing of the appeal, had also made pre-deposit of Rs.63,278/- as is required for maintaining the appeal under the provisions of Section 107(6) of the said Act, there had been delay in filing of the appeal. In such circumstances, the petitioner had also filed an application on 3rd April, 2024 explaining the delay in preferring the appeal.
The appellate authority without appropriately taking note of the grounds for condonation of delay had rejected the appeal, inter alia, on the ground that appellate authority is competent only to condone the delay provided the appeal is filed within the period of one month beyond the time prescribed. He submitted that the aforesaid order is perverse. In the facts of this case this Court may be pleased to restore the appeal by condoning the delay.
With the filing of the appeal, the petitioner had also made a pre-deposit of Rs.63,278/- as is required for maintaining the appeal. As such there is no lack of bona fide on the part of the petitioner in preferring the appeal. It appears that the petitioner had also made a prayer for condonation of delay, inter alia, claiming that by reasons of lack of proper knowledge of the GST portal there had been delay in filing the appeal. There appears to be a delay of 66 days in filing the appeal.
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The petitioner is a small businessman and there is no lack of bona fide on the part of the petitioner and one does not stand to gain by filing a belated appeal, the court viewed that in the appellate authority ought to have appropriately considered the application for condonation of delay filed by the petitioner.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.
While condoning the delay, the single bench of Justice Raja Basu Chowdhury directed the appellate authority to hear out and dispose of the appeal, on merit, upon giving an opportunity of hearing to the petitioner, within a period of 8 weeks.
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