Delay in GST appeal filing due to illness: HC directs appellate authority to hear case on merits

Krishna Enterprise Vs Commissioner (Calcutta High Court)

In a significant ruling, the Calcutta High Court addressed the case of Krishna Enterprise Vs Commissioner, involving a 38-day delay in filing a GST appeal due to the proprietor’s illness. The court’s directive to the appellate authority to hear the case on merit underscores the importance of considering genuine reasons for delays in legal proceedings.

The case revolves around Krishna Enterprise, a proprietorship firm, which filed a writ petition challenging the rejection of its GST appeal by the appellate authority. The appeal, initially dismissed due to a delay in filing, brought to light critical issues regarding the interpretation of “sufficient cause” for delays under Section 107 of the CGST/WBGST Act, 2017.

The petitioner, Krishna Enterprise, was served with a show cause notice on August 3, 2023, under Section 73 of the CGST/WBGST Act, citing discrepancies in tax filings for the financial year 2017-18. Following this, an order was passed on November 9, 2023, leading the petitioner to file an appeal under Section 107. The appeal included a pre-deposit of 10% of the disputed tax, as confirmed by the submission of form GST APL-01.

The core issue was the 38-day delay in filing the appeal, which exceeded the prescribed period of limitation. The petitioner, through an affidavit, attributed this delay to the illness of its proprietor, who was advised complete rest from February 2024. Supporting medical certificates were provided to validate this claim.

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