Dola Bharati Vs State of West Bengal & Ors. (Calcutta High Court)
The case of Dola Bharati Vs State of West Bengal deals with a writ petition challenging the imposition of a penalty by the Appellate Authority under the West Bengal Goods and Services Tax (WBGST) Act, 2017. The petitioner, Smt. Dola Bharati, a business owner of M/s Divine, was accused of availing excess Input Tax Credit (ITC) for the year 2017-2018. The Assistant Commissioner had issued a demand for the excess ITC, along with penalties and interest. The petitioner contended that the authorities failed to provide a personal hearing and acted in a biased manner, ignoring the statutory requirements. Furthermore, the petitioner cited unavoidable personal circumstances, including her husband’s critical illness, which delayed her appeal against the adjudicating authority’s order. Despite providing supporting medical documentation, her appeal was dismissed as time-barred, leading to the current writ petition.
The Calcutta High Court examined the procedural flaws and concluded that the Appellate Authority’s refusal to condone the delay due to personal reasons was unreasonable. The Court observed that the statutory time limits under the WBGST Act should have been interpreted more flexibly, considering the petitioner’s genuine circumstances. Additionally, the non-formation of the GST Appellate Tribunal was found to infringe upon the petitioner’s right to further appeal. Relying on precedent, the Court held that the appeal could have been extended based on compelling circumstances, as per Section 107 of the WBGST Act. The Court ultimately quashed the impugned orders, restoring the petitioner’s rights under the Act, and directed the Appellate Authority to reconsider the appeal based on the merits of the condonation request.
