The court emphasized that the petitioner had acted in good faith by making the required pre-deposit and there was no evidence of mala fide intent on the part of the petitioner.
In a recent judgement in case of Partha Pratim Dasgupta Vs Joint Commissioner of State Tax & Ors (Case No. WPA 12584 of 2024), the Calcutta High Court condoned a 66-day delay in filing a Goods and Services Tax (GST) appeal, citing the petitioner’s lack of proper knowledge regarding the GST portal. The court directed the appellate authority to hear and dispose of the appeal on its merits, ensuring the petitioner receives an opportunity for a hearing.
The case involved Sukanta Pal V, a small businessman, who challenged an order issued by the appellate authority under Section 107 of the Central/West Bengal Goods and Services Tax Act, 2017 (CGST Act). The appeal had previously been rejected due to a delay, with the appellate authority arguing that it lacked the jurisdiction to condone delays beyond a specific time limit.
The proceedings began under Section 73 of the CGST Act, targeting the tax period from May 2017 to March 2018. An order under Section 73(9) was issued on October 31, 2023. In response, Sukanta Pal V filed an appeal, accompanied by a pre-deposit of Rs. 63,278 as mandated under Section 107(6) of the CGST Act. However, due to a lack of familiarity with the GST portal, there was a 66-day delay in filing the appeal.
On April 3, 2024, Sukanta Pal V submitted an application explaining the reasons for the delay. Despite this, the appellate authority rejected the application, citing limitations on its ability to condone delays. The authority argued that delays could only be condoned if the appeal was filed within one month of the original deadline.
The Calcutta High Court, led by Justice Raja Basu Chowdhury, found this reasoning to be unjust. The court emphasized that the petitioner had acted in good faith by making the required pre-deposit and filing the appeal. The court noted that there was no evidence of mala fide intent on the part of the petitioner and that the delay did not benefit the petitioner in any way.
In light of these considerations, the High Court condoned the 66-day delay and instructed the appellate authority to reconsider the petition on its merits. The court ordered the authority to provide the petitioner with an opportunity for a hearing and to resolve the matter within eight weeks.
This ruling underscores the importance of considering genuine reasons for delays, particularly when small businesses are involved, and highlights the court’s willingness to ensure that justice is not denied due to procedural technicalities.
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