Dhananjoy De Vs Superintendent of Central Tax Audit (Calcutta High Court)
The Calcutta High Court considered a challenge to an appellate order dated July 24, 2025, issued under Section 107 of the CGST Act, 2017. The petitioner had appealed against an order dated June 20, 2023 passed under Section 74 of the Act, but the appellate authority dismissed the appeal on two grounds: delay in filing and non-fulfillment of the mandatory pre-deposit requirement.
The appeal had been filed 27 days beyond the statutory three-month limitation period prescribed under Section 107. However, Section 107(4) allows an additional condonable period of one month, and the appeal was filed within this extended period. The petitioner sought condonation of the delay, explaining that he was suffering from rheumatoid arthritis, which prevented him from filing the appeal on time. Supporting materials were placed before the Court as part of the condonation application.
The petitioner further submitted that the appellate authority erred in calculating the statutory pre-deposit. As per the order in original, the total tax demand was Rs. 26,31,154/-, but the petitioner disputed only Rs. 21,53,505/-, with the remaining amount being admitted and already paid. The petitioner argued that the pre-deposit under Section 107 is required only on the disputed tax component, and therefore the correct pre-deposit should have been 10% of Rs. 21,53,505/- instead of 10% of the entire tax demand.
