Frontline (NCR) Business Solutions Private Limited & Anr. Vs State of West Bengal & Ors. (Calcutta High Court)
Whether rejection of appeal before the GST authorities on grounds of being defective for non payment of the requisite pre-deposit can be cured by filing another appeal by making correct pre-deposit?
Introduction
In a significant ruling, the Calcutta High Court addressed a critical issue regarding the procedural aspects of filing GST appeals. The case, Private Limited & Anr. Vs State of West Bengal & Ors., revolved around whether a defective appeal, dismissed due to non-payment of the requisite pre-deposit, could be cured by filing a subsequent appeal with the correct pre-deposit. This judgment provides clarity on the process and reinforces taxpayers’ rights to appeal.
Detailed Analysis
The dispute arose when the appellant filed an appeal before the GST authorities under Section 107 of the CGST/WBGST Act, 2017, without paying the correct pre-deposit amount. Initially, the appellant paid only 1% of the disputed tax instead of the mandatory 10%. Consequently, the appeal was dismissed as defective and delayed.
After receiving the dismissal order, the appellant filed another appeal with the correct 10% pre-deposit. However, this appeal was also dismissed due to delay. The appellant then approached the Calcutta High Court, seeking relief and challenging the dismissal orders dated 31st January 2024 and 28th May 2024.
