GST appeal delay condoned upon sufficient explanation and substantial merits, subject to costs.

The petitioner sought to withdraw his writ petition on merits and pursue an appeal under Section 107 of the Central Goods and Services Tax Act, 2017 and the 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 set out in paragraphs 48–50 of the writ petition.

The State was represented by counsel.

The Court found the explanation satisfactory and noted that the writ petition raised a substantial and arguable case on merits.

1. Whether the delay of approximately two years in preferring an appeal under Section 107 should be condoned on the explanation provided by the petitioner.

2. Whether the appeal should be entertained and decided on its merits subject to conditions imposed by the Court.

The Court considered Section 107 of the Central Goods and Services Tax Act, 2017 and the corresponding provision of the West Bengal Goods and Services Tax Act, 2017, which provide for an appeal before the Appellate Authority.

It treated the petitioner’s explanation for delay and the arguable merits of the proposed appeal as grounds warranting consideration rather than non-suiting the petitioner for limitation, while balancing that relief by imposing costs.

The Court accepted the explanation in paragraphs 48–50 of the writ petition as satisfactory and considered that the proposed appeal raised a substantial question requiring adjudication by the Appellate Authority.

It concluded that refusing the appeal solely on limitation grounds could seriously prejudice the petitioner.

To balance the delay with the interests of justice, the Court made condonation conditional on payment of costs and directed the Appellate Authority to hear the appeal on its merits once compliance was established.

Upon verification, the Authority must hear the appeal on merits, grant a personal hearing, and issue a reasoned order within eight weeks of the compliance report; the decision must be communicated to the petitioner within a further week.

The writ petition was disposed of with these directions.