The Calcutta High Court, in a significant ruling, held that delay in filing a GST appeal due to the illness of the assessee’s accountant constitutes a sufficient cause for condonation. The Court observed that since the assessee was neither grossly negligent nor adopting a casual approach, the delay deserved to be condoned. Accordingly, the matter was remanded for fresh consideration on merits.
Key Issue
Whether delay in filing appeal can be condoned when the delay occurred due to illness of the assessee’s accountant, who was handling the appeal preparation.
Facts of the Case
- The assessee filed an appeal after the prescribed limitation period.
- Reason for delay:
The assessee’s accountant was seriously ill and undergoing medical treatment. - Though the accountant was not an authorised signatory, he was responsible for:
- Preparation of documents
- Coordinating appeal filing
- Handling GST compliance work
Because of his illness, the appeal could not be filed on time.
Department’s Stand
The authorities rejected the appeal on the ground that:
- Delay was beyond limitation
- No sufficient cause was shown
High Court’s Observation
The Calcutta High Court held that:
- Illness of the accountant was a genuine and reasonable cause.
- The assessee’s conduct did not reflect:
- Gross negligence
- Deliberate delay
- Casual approach
The Court emphasized that procedural delays should not defeat substantive justice when reasons are bona fide.
Held / Decision
✅ Delay deserved to be condoned.
✅ Matter was remanded back for fresh consideration on merits.
✅ Appeal could not be dismissed merely on technical limitation grounds.
Legal Principle
Delay can be condoned if sufficient cause is shown and the assessee is not grossly negligent or acting casually.
Practical Importance
This judgment helps taxpayers where appeal filing is delayed due to:
- Accountant’s illness
- Consultant-related genuine hardship
- Bona fide procedural issues
Courts may adopt a liberal approach if delay is not intentional.