Facts of the Case

The petitioner, Mala Panda, challenged an order dated 19.04.2023 passed by the appellate authority under the WBGST Act, dismissing her appeal on the sole ground of a delay of more than 11 months in filing it, without going into the merits. The petitioner's explanation for the delay was that it was attributable to her lawyer's fault in not filing the appeal in time.

Issues Involved

  1. Whether an inordinate delay of over 11 months, explained solely by the advocate's default, could be condoned by the writ court where the statutory appellate authority had no power to condone delay beyond the prescribed period.

Petitioner's Arguments

  • The delay in filing the appeal was solely due to the fault of the petitioner's lawyer, to whom the papers had been handed over, and not any lack of diligence on the petitioner's own part.
  • Through counsel, the petitioner expressed readiness and willingness to pay a cost of Rs. 1 lakh in order to have the inordinate delay condoned.

Respondent's Arguments

  • The State's position, reflected in the impugned order, was that the appeal was rightly dismissed on the ground of delay without going into merits, consistent with the statutory limitation scheme.

Court Order / Findings

  • The Court observed that an explanation of delay resting merely on handing over papers to a lawyer and "sleeping comfortably" thereafter is not, by itself, acceptable, since a litigant must remain vigilant and diligent, and permitting such explanations routinely would frustrate the law of limitation.
  • However, since the appellate order rejected the appeal solely on the ground of delay without touching the merits, and the petitioner's counsel undertook payment of Rs. 1 lakh as cost, the Court set aside the impugned order conditional on payment of that cost within 10 days, with proof to be filed before the appellate authority.
  • On such proof being filed, the appellate authority was directed to consider and dispose of the appeal on merits in accordance with law, and the bank attachment was directed to be lifted; failing payment, the impugned order would automatically stand revived.

Important Clarification

Even where an assessee's explanation for delay in filing a GST appeal (such as an advocate's default) is not, by itself, a sufficient cause in law, the writ court retains equitable discretion under Article 226 to restore the appeal for hearing on merits by imposing a monetary cost, particularly where the appellate order was passed purely on limitation without touching the substance of the dispute.

Sections Involved

  • Section 107, WBGST Act, 2017 — prescribes the limitation period (three months, extendable by one further month) for filing appeals before the Appellate Authority.

Decision – In Favour of

Disposed of with directions, in favour of the Assessee — the appeal was restored for consideration on merits, subject to payment of Rs. 1 lakh cost, without any finding on the substantive tax dispute.

Case Details

  • Court: High Court at Calcutta
  • Case Number: WPA 14235 of 2023
  • CNR / Citation: WPA 14235 of 2023
  • Coram: Hon'ble Md. Nizamuddin, J.
  • Date of Order: 4 July 2023

Link to Download the Order

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