In the matter of Sushil Kumar Hazra vs. the State of West Bengal & Ors. in WPA 11649 of 2024, dated 16th May, 2024, the Hon’ble Calcutta High Court directed the authority to consider explanation given by the assesee (i.e. he was prevented by medical reasons for filing an appeal on time) and to condone the delay after one month from the prescribed period of limitation. In this context, the Hon’ble High Court has taken view that the issue whether an appeal can be entertained beyond one month from the prescribed period of limitation has already been decided by the Hon’ble Division Bench of this Court in the case of S. K. Chakraborty & Sons v. Union of India reported in 2023 SCC Online Cal. 4759.
In the said matter, adjudication order dated 5th September, 2023, was passed under Section 73 of the Central Goods and Services Tax Act, 2017/West Bengal Goods and Services Tax Act, 2017 (hereinafter referred to as the “said Act”), in Form DRC-07, an appeal was filed before the Appellate Authority on 6th February, 2024. The said appeal was barred by limitation.
In response to the show cause notice issued by Appellate Authority, the assesse had explained the delay in filing the appeal. The condonation of delay was sought for on medical reasons. Although, the appellate authority did not disbelieve the medical certificate, however, had arrived at a conclusion since the petitioner could carry on business, there was no reason for the petitioner not to file the appeal within the prescribed period.
Despite observing as such, the Appellate Authority, however, proceeded to dismiss the appeal by holding that there is no provision laid down under Section 107 of the said Act to accept an appeal after one month from the prescribed period of limitation.
In this context, the Hon’ble High Court has taken view that the issue whether an appeal can be entertained beyond one month from the prescribed period of limitation has already been decided by the Hon’ble Division Bench of this Court in the case of S. K. Chakraborty & Sons v. Union of India reported in 2023 SCC Online Cal. 4759.
The Hon’ble High Court has observed that on the aspect of disbelieving the petitioner I find that the Appellate Authority had chosen not to question the medical certificate produced by the petitioner. Once, the Appellate Authority had accepted the medical certificate, there was nothing on record for the Appellate Authority to conclude since the petitioner could carry on business despite illness by submission of GSTR-1 and GSTR-3B in due time, the illness could not be a reason for the petitioner not to file the appeal in time. In my view the petitioner cannot be penalized for complying with the statutory obligations. Since, on the disclosure made by the petitioner it is apparent that the petitioner was prevented by medical reasons from filing the aforesaid appeal in time, in my view, the Appellate Authority ought to have, by taking the same into consideration condoned the delay. The discretion exercised by the Appellate Authority in refusing to accept the explanation does not appear to be justifiable, rather arbitrary. Having regard to the same, I am of the view that the delay in preferring the appeal should be and is accordingly condoned. Please also refer my article dated 10th March, 2024- Divergent judicial opinions for time barred appeals under GST; and dated 31st January, 2024 – Time barred appeal can be condoned by Appellate Authority under GST.
Conclusion: The ruling in Sushil Kumar Hazra vs. the State of West Bengal & Ors. by the Hon’ble Calcutta High Court underscores the importance of considering genuine reasons for delays in filing appeals. It reaffirms the principle that judicial bodies should exercise discretion judiciously, particularly in cases involving health-related delays. This decision not only offers relief to the petitioner but also sets a significant precedent for similar cases in the future, promoting a fair and just legal process.
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