Delay in GST Appeal Condoned on Sufficient Cause, Subject to Costs

The petitioner sought to withdraw his writ petition on the merits and pursue an appeal under Section 107 of the Central Goods and Services Tax Act, 2017 / West Bengal Goods and Services Tax Act, 2017. He also sought condonation of the approximately two-year delay in filing that appeal, relying on the explanation in paragraphs 48–50 of the writ petition.

The State’s advocate was engaged to appear, although the State respondent was otherwise unrepresented in court that day.

Whether the delay in preferring an appeal under Section 107 of the CGST Act / WBGST Act should be condoned on the explanation provided by the petitioner.

Whether the appeal should be entertained and decided on its merits after the petitioner complies with the conditions imposed by the Court.

Section 107 of the CGST Act, 2017 and the corresponding provision of the WBGST Act, 2017 provide for an appeal before the First Appellate Authority.

The Court considered whether the petitioner had sufficiently explained the delay and concluded that he should not be non-suited on limitation where the explanation appeared satisfactory and substantial, arguable merits warranted adjudication. No precedent was cited.

The Court accepted the explanation for the delay set out in paragraphs 48–50 of the writ petition and considered the petitioner’s case on merits substantial and arguable.

It therefore found that rejecting the appeal solely on limitation would prejudice the petitioner, while balancing that conclusion by requiring payment of costs. The Court made consideration of the appeal conditional on payment and proof of compliance.

Once satisfied as to compliance, the Appellate Authority must entertain and decide the appeal on its merits by a reasoned order within eight weeks of filing the compliance report, grant the petitioner a personal hearing, and communicate its decision within a further week. The writ petition was disposed of with these directions.