Case Law Details
Sikha Debnath Vs Assistant Commissioner of State Tax (Calcutta High Court)
The Hon’ble Calcutta High Court in the matter of Sikha Debnath v. The Assistant Commissioner of State Tax and Ors. [WPA 304 of 2023 dated February 10, 2023] condoned the delay of period of limitation to file appeal before the Appellate Authority by the assessee. Held that, the court can allow the assessee to file an appeal where there is delay of a negligible period by extending time as stipulated under Section 107 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). Further, directed the Appellate Authority to accept the memorandum of appeal and decide on the merits within six weeks.
Facts:
Sikha Debnath (“the Petitioner”) had preferred an appeal before the Appellate Authority (“the Respondent”) under the CGST Act after a delay of 27 days from the statutory period. The Respondent rejected the appeal only on the ground that the same is barred by limitation.
Being aggrieved, this petition has been filed.
The Petitioner submitted that the appeal should be allowed as the period of delay was for a negligible period.
Issue:
Whether the appeal preferred by the Petitioner after a delay of 27 days be allowed?
Held:
The Hon’ble Calcutta High Court in WPA 304 of 2023 held as under:
- Analyzed Section 107 of the CGST Act, and noted that any person, who is aggrieved by an order passed under the CGST Act, can file an appeal before the Respondent within a period of three months. Further, Section 107(4) of the CGST Act authorizes the Respondent to allow the appeal to be presented within a further period of one month after expiry of the three months, if the Respondent is satisfied that the Appellant was prevented from presenting the appeal by sufficient cause.
- Relied on the judgment in the earlier matter of Suraj Mangar v. Assistant Commissioner and Ors. [WPA 2809 of 2022 dated January 9, 2023] wherein it was held that the Court can allow the Petitioner to file an appeal where there is delay of negligible period by extending time as stipulated under Section 107 of the CGST Act even after expiry of three plus one months.
- Further relied on the judgment in the earlier matter of Debson Pumps Pvt. Ltd. and Anr. v. Assistant Commissioner and Anr. [MAT No. 1496 of 2022 dated September 21, 2022] wherein, the Petitioner was permitted to file an appeal after the expiry of statutory period after condoning the delay.
- Directed the Respondent to accept the memorandum of appeal and decide on the merits within six weeks.
Relevant Provisions:
Section 107 of the CGST Act:
“107. Appeals to Appellate Authority.–
(1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.
(2) The Commissioner may, on his own motion, or upon request from the Commissioner of State tax or the Commissioner of Union territory tax, call for and examine the record of any proceedings in which an adjudicating authority has passed any decision or order under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order.
(3) Where, in pursuance of an order under sub-section (2), the authorised officer makes an application to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application.
(4) The Appellate Authority may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months or six months, as the case may be, allow it to be presented within a further period of one month.
(5) Every appeal under this section shall be in such form and shall be verified in such manner as may be prescribed.
(6) No appeal shall be filed under sub-section (1), unless the appellant has paid-
(a) in full, such part of the amount of tax, interest, fine, fee and penalty arising from the impugned order, as is admitted by him; and
(b) a sum equal to ten per cent. of the remaining amount of tax in dispute arising from the said order subject to a maximum of twenty-five crore rupees, in relation to which the appeal has been filed.
Provided that no appeal shall be filed against an order under sub-section (3) of section 129, unless a sum equal to twenty-five per cent. of the penalty has been paid by the appellant.
(7) Where the appellant has paid the amount under sub-section (6), the recovery proceedings for the balance amount shall be deemed to be stayed.
(8) The Appellate Authority shall give an opportunity to the appellant of being heard.
(9) The Appellate Authority may, if sufficient cause is shown at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.
(10) The Appellate Authority may, at the time of hearing of an appeal, allow an appellant to add any ground of appeal not specified in the grounds of appeal, if it is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable.
(11) The Appellate Authority shall, after making such further inquiry as may be necessary, pass such order, as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order:
Provided that an order enhancing any fee or penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund or input tax credit shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order:
Provided further that where the Appellate Authority is of the opinion that any tax has not been paid or short-paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised, no order requiring the appellant to pay such tax or input tax credit shall be passed unless the appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section 73 or section 74.
(12) The order of the Appellate Authority disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reasons for such decision.
(13) The Appellate Authority shall, where it is possible to do so, hear and decide every appeal within a period of one year from the date on which it is filed:
Provided that where the issuance of order is stayed by an order of a court or Tribunal, the period of such stay shall be excluded in computing the period of one year.
(14) On disposal of the appeal, the Appellate Authority shall communicate the order passed by it to the appellant, respondent and to the adjudicating authority.
(15) A copy of the order passed by the Appellate Authority shall also be sent to the jurisdictional Commissioner or the authority designated by him in this behalf and the jurisdictional Commissioner of State tax or Commissioner of Union Territory Tax or an authority designated by him in this behalf.
(16) Every order passed under this section shall, subject to the provisions of section 108 or section 113 or section 117 or section 118 be final and binding on the parties.”
FULL TEXT OF THE JUDGMENT/ORDER OF CALCUTTA HIGH COURT
Affidavit of service be kept with the record.
Section 107 of the West Bengal Goods and Services Act, 2017 deals with the appeals to the Appellate Authority. Sub-clause (1) of Section 107 provides that any person aggrieved by an order passed under this Act or the Central Goods and Services Act by adjudicating authority may file an appeal before the prescribed authority within three months from the date on which the decision is communicated to such person. Subsection (4) of Section 107 authorizes the Appellate Authority to allow the appeal to be presented within a further period of one month after expiry of the period of preferring an appeal, if the Appellate Authority satisfies that the appellant was prevented from presenting the appeal by sufficient cause within the initial period of three months.
In the instant case the petitioner preferred an appeal before the competent authority under the West Bengal Goods and Services Act after a delay of 27 days from the statutory period of 3 / 4 months. The Appellate Authority rejected the appeal only on the ground that the same is barred by limitation. The learned advocate for the petitioner referring to a decision in WPA 2809 of 2022 (Suraj Mangar versus Assistant Commissioner of West Bengal State Tax, Cooch Behar Charge, Jalpaiguri, West Bengal & Ors.) dated 9th January, 2023 submits that this Court can allow the petitioner to file an appeal where there is delay of negligible period by extending time as stipulated under Section 107 even after expiry of three plus one month.
The learned advocate for the petitioner has also referred to a decision of the Division Bench of this Court delivered on 21st September, 2022 in MAT No. 1496 of 2022 (Debson Pumps Pvt. Ltd. and Anr. versus Assistant Commissioner of State Tax, Bowbazar Charge, Dharmatola and Anr.) where the Division Bench of this Court was even permitted the petitioner to file an appeal after the expiry of statutory period after condoning the delay.
The learned advocate for the State is in conformity with the submission made by the learned advocate for the petitioner and submits that in view of the decisions of this Court, the prayer of the petitioner may be allowed.
In view of such submission and under the facts and circumstances of the case, the Appellate Authority is directed to accept the Memorandum of Appeal and decide the appeal on merits within six weeks.
It is made clear that this Court has not gone into the merits of the matter and the Appellate Authority is at liberty to decide the factual and legal issues involved in the appeal independently without being influenced in any way by this order.
The instant writ petition is disposed of.
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