ANAND KUMAR HIRAWAT
V.
THE SENIOR JOINT COMMISSIONER OF COMMERCIAL TAXES & WBGST, BURRABAZAR CIRCLE & ORS.
WPA 28195 of 2024 dated 04.12.2024
HIGH COURT: CALCUTTA
Facts: Proceedings under Section 73 of the CGST Act were initiated against the Petitioner, a sole proprietorship business, for the period April 2018 to March 2019, alleging short payment of tax and excess availment of ITC, and a consequent adjudication order was passed, demanding a total amount of Rs. 23,51,801/- including tax, interest, and penalty. However, no specific details or evidence of discrepancies were provided to the Petitioner, violating the principles of natural justice.
Being aggrieved, the Petitioner filed an appeal in Form APL-01, before the concerned Appellate Authority and explained the delay in filing the appeal, attributing it to the negligence of the former tax consultant and the lack of prior knowledge about the adjudication proceedings. However, the appeal was rejected solely on the ground of delay, prompting the Petitioner to approach the High Court for relief.
Issue: Whether the Appellate Authority under Section 107 of the CGST Act can adopt a rigid approach towards the limitation period and dismiss appeals for delayed filing without considering genuine hardships?
Held that: The Hon’ble Calcutta High Court quashed the appeal rejection order, emphasizing that the limitation provisions under Section 107 of the CGST Act must be interpreted liberally in cases where genuine hardships are demonstrated, particularly in light of judicial precedents supporting such relief.
Observed that, the CGST Act does not expressly or impliedly exclude the application of Section 5 of the Limitation Act, 1963, allowing for the condonation of delay.
Directed the Appellate Authority to consider the Petitioner's application for condonation of delay on merits and condone the delay if justified and decide the appeal on its merits.
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