Shruti Iron Private Limited Vs Assistant Commissioner (Calcutta High Court)
The Calcutta High Court, in Shruti Iron Private Limited vs. Assistant Commissioner, addressed procedural and limitation concerns under the Central Goods and Services Tax Act, 2017 (CGST Act). The case revolved around a tax demand issued following an audit of the petitioner, M/s Shruti Iron Pvt. Ltd., for the period from July 2017 to March 2018. Despite complying with initial audit requirements, the petitioner contested the subsequent demands citing procedural lapses. A mix-up by the petitioner’s legal counsel led to an ex-parte order confirming the demands. When the petitioner appealed the decision, a delay due to the illness of its director resulted in the appellate authority rejecting the appeal on limitation grounds.
The Court emphasized that limitation provisions under Section 107 of the CGST Act should be interpreted liberally when genuine hardships are demonstrated. Referencing earlier judgments, the Court clarified that the Limitation Act, 1963, applies to such cases unless explicitly excluded. The absence of such exclusion in Section 107 allowed for a discretionary extension in specific circumstances. Observing procedural irregularities, including unsigned notices and the absence of requisite actions against defaulting suppliers, the Court found merit in the petitioner’s claims. Consequently, it quashed the appellate authority’s order and directed reconsideration of the delay condonation application on its merits, allowing the appeal process to proceed.
