Rashtriya Ispat Nigam Limited Vs State of West Benal & Ors. (Calcutta High Court)
Calcutta High Court addressed a writ petition by Rashtriya Ispat Nigam Limited (RINL), a central public sector undertaking, challenging the rejection of its GST appeal on grounds of limitation. RINL contended that the appellate authority dismissed its appeal without considering the merits, thereby violating principles of natural justice. The dispute originated from a mismatch in GST returns for July 2017–March 2018, leading to a demand notice for tax dues. However, the notices were uploaded solely on the GST portal without conventional communication, resulting in RINL’s lack of awareness. An ex-parte order confirming the demand was issued, and when RINL later appealed, the delay of 246 days led to outright rejection. The company then sought relief from the High Court, arguing that the appellate authority failed to consider the genuine reasons behind the delay.
Upon review, the High Court found that RINL had sufficiently justified the delay in filing the appeal. It observed that the appellate authority dismissed the case mechanically without assessing whether RINL was genuinely unaware of the impugned order. Citing legal precedents, the Court highlighted that under Section 107(4) of the CGST Act, the appellate authority has the discretion to condone delays beyond the statutory period. Consequently, the High Court set aside the rejection order and directed the appellate authority to hear the appeal on merits, ensuring a fair hearing within twelve weeks. The petition was thus disposed of, reaffirming the necessity of procedural fairness in GST adjudication.
