Top Stories Pre-deposit Made for Appeal Proves Bonafide Intention of Assessee:  Calcutta HC condones 5 days Delay in Filing GST Appeal [Read Order] While setting aside the order, the court condoned the delay in preferring the appeal and directed the appellate authority to hear out and dispose of the appeal By Yogitha S. Yogesh – On January 24, 2025 11:56 am – 3 mins read

The Calcutta High Court considering that the petitioner is a small businessman and there is no lack of bona fide on the part of the petitioner, condoned the delay of 5 days in filing appeal under Central/West Bengal Goods and Services Tax Act, 2017(CGST). It was viewed that the petitioner had also made pre-deposit for maintaining the appeal, which proves there is no lack of bona fide on the part of the petitioner. Akash Jana, the petitioner challenged the order dated 28th October, 2024, passed by the appellate authority under Section 107 of the Central/West Bengal Goods and Services Tax Act, 2017 ( “said Act”), whereby the petitioner’s appeal had been rejected on the ground that the same was barred by limitation. In connection with a proceeding initiated under Section 73 of the said Act, for the tax period April, 2018 to March, 2019 an order under Section 73(9) of the said Act was passed on 19th April, 2024. 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.43,490/- 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.

Master GST – Expert-Led Courses for Ambitious Professionals, Click Here In such circumstance, the petitioner had also applied on 23rd August, 2024 explaining the delay in preferring the appeal. According to the petitioner, 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. Mr. Siddiqui, advocate enters appearance on behalf of the State-respondents. Advocates appearing for the respective parties and considered the materials on record. Admittedly, in this case the petitioner had filed an appeal challenging the order passed under Section 73(9) of the said Act.

Simultaneously, with the filing of the appeal, the petitioner had also made pre-deposit of Rs.43,490/- 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, on account of illness. There appears to be a delay of 05 days in filing the appeal. Taking into consideration that 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, a single bench of Justice Rajarshi Bharadwaj held that the appellate authority ought to have appropriately considered the application for condonation of delay filed by the petitioner. Master GST – Expert-Led Courses for Ambitious Professionals, Click Here

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. It was evident that the appellate authority had failed to exercise the jurisdiction vested in it. While setting aside the order, the court condoned the delay in preferring the appeal and 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 from the date of communication of this order