Ram Kumar Sinhal Vs State of West Bengal and Others (Calcutta High Court)
Calcutta High Court, in the case of Ram Kumar Sinhal Vs State of West Bengal and Others, overturned a Single Judge’s decision, quashing an assessment order and an appellate authority’s dismissal of an appeal, both based on a perceived delay. The appellant, a partnership firm, had challenged an ex parte assessment under the West Bengal Goods and Services Tax Act, 2017, arguing violations of natural justice and improper communication of notices. The initial assessment fixed a liability of Rs. 17,79,242/-, following a Show Cause Notice issued on May 10, 2024, which scheduled a personal hearing on June 3, 2024, and set June 10, 2024, as the deadline for reply submission. The appellant submitted their reply on June 10, 2024, explicitly requesting a personal hearing. However, an ex parte assessment order was issued on August 12, 2024, with the Proper Officer claiming a prior hearing opportunity.
The High Court focused on two primary issues: the condonability of the delay in filing the appeal and the violation of natural justice. Regarding the delay, the Court held that the timelines in Section 107(4) of the WBGST Act are directory, not mandatory, and thus, the provisions of the Limitation Act, 1963, apply. This was supported by a comparison with other statutory provisions where mandatory language is explicitly used. Furthermore, the Court found that the assessment order was improperly communicated as it was uploaded under the “View Additional Notices/Orders” tab instead of the “View Notices and Orders” tab on the GST portal. The Court noted that this “Additional Tab” placement was problematic and not easily discoverable by assessees, a recurring issue highlighted in various High Court judgments. The Court also accepted the appellant’s explanation for the delay, which cited medical emergencies affecting both active partners of the firm.
