Illness of Working Partner Sufficient Ground to Condone Delay in GST Appeal: Calcutta HC Sets Aside Appellate Order [Read Order]

The Calcutta High Court condoned the delay in filing a Goods and Services Tax (GST) appeal, accepting illness of the working partner as a valid cause supported by evidence and held that the appellate authority erred in dismissing the appeal on delay without reasons. Thus, the impugned order was set aside and the matter was remanded for fresh consideration.

The petitioners, Chanda Construction & Anr., filed the present writ petition challenging an order dated June 26, 2025 passed by the Appellate Authority under Section 107 of the WBGST Act, 2017/CGST Act, 2017. Later on, the impugned order dismissed the petitioners' appeal against an order dated August 7, 2024 passed under Section 73 of the said Act solely on the ground of delay in filing the appeal.

The Section 107 of the West Bengal Goods and Service Tax Act (WBGST), 2017, explained that: Appeals to Appellate Authority.

“(1) Any person aggrieved by any decision or order passed under this Act or the Central Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.

(2) The Commissioner may, on his own motion, or upon request from the Commissioner of central tax, call for and examine the record of any proceeding in which an adjudicating authority has passed any decision or order under this Act or the Central Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order”

The petitioner's appeal under Section 107 of the WBGST/CGST Act, 2017 against an order dated August 7, 2024 passed under Section 73 was dismissed by the appellate authority on June 26, 2025 on the ground of delay only. The petitioner had filed an application for condonation of delay supported by documentary evidence of the working partner's serious illness.

The appellate authority rejected the condonation application without providing any reasons for non-acceptance and without disbelieving the factum of illness and the delay in filing the appeal was marginal. Aggrieved by the arbitrary dismissal of their appeal on technical grounds, the Petitioners approached the High Court at Calcutta.

The Counsel for the Petitioner, Himangshu Kumar Ray, submitted that the appeal could not be filed within the statutory timeline due to serious illness of the working partner of the firm. Documentary evidence supporting the illness was annexed to the condonation application. The appellate authority rejected the condonation application without assigning any reasons and without disbelieving the factum of illness. Given that the delay was marginal and the illness was duly evidenced, the appellate authority ought to have condoned the delay.

The High Court consisted of Justice Om Narayan Rai, heard and after considering the matter, held that the petitioner was not grossly negligent in pursuing its cause and denying the appeal would deprive the petitioner of an important forum. Accordingly, the delay was condoned.

Thus, the impugned order dated June 24, 2025 was set aside and the appeal was restored to the appellate authority for fresh adjudication on merits. The writ petition was disposed of with no costs.

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