Facts of the Case

The petitioner, M/s Ralco Synergy Pvt. Ltd., challenged an appellate order dated 23rd September 2024 that had dismissed its statutory appeal against an order dated 1st February 2023 passed under Section 73 of the WBGST/CGST Act, 2017. The petitioner initially claimed non-service of the Section 73 order, but the department's disclosure in court revealed the order had been duly uploaded on the portal in Form GST DRC-07 and an email regarding recovery was sent to the petitioner on 14th June 2023, to which the petitioner replied on 25th June 2023 seeking a 15-day extension. The appeal was ultimately filed on 26th March 2024, with an apparent delay of 330 days, and was dismissed on the ground that the petitioner had not shown sufficient cause for the delay.

Issues Involved

  1. Whether the Appellate Authority's dismissal of a substantially delayed appeal (330 days) for insufficient cause could be sustained given some explanation was offered.
  2. Whether the non-constitution of the GST Appellate Tribunal was a relevant factor in permitting the appeal to proceed on additional pre-deposit terms.

Petitioner's Arguments

  • The petitioner initially argued non-service of the original Section 73 order but, upon the department's disclosure, contended that the explanation offered — including the reply seeking extension shortly after the recovery email — should be treated as sufficient cause for the delay in filing the appeal.

Respondent's Arguments

  • The State disclosed that the order had been duly uploaded on the portal and an email of recovery demand sent, to which the petitioner had itself responded, undermining any claim of non-service, and defended the appellate dismissal for want of sufficient cause for the 330-day delay.

Court Order / Findings

  • The Court found that while the explanation for the delay was not entirely sufficient, some explanation had been provided, and considering that the GST Appellate Tribunal was yet to be constituted, a purely technical dismissal on limitation would leave the petitioner without any effective remedy.
  • The Court set aside the appellate order dated 23rd September 2024 along with the consequential demand in Form GST APL-04, conditional on the petitioner depositing an additional 10% of the disputed tax (over and above the amount already deposited) within three weeks, upon which the appellate authority shall hear and dispose of the appeal on merits.
  • The Court made clear that if the additional deposit was not made within the stipulated time, the benefit of the order would lapse and the appellate order along with the consequential demand would automatically revive.

Important Clarification

  • Even a substantial delay (330 days) in filing a GST appeal may be condoned by a writ court where some explanation is offered and the GST Appellate Tribunal remains unconstituted, provided the taxpayer deposits an enhanced pre-deposit (here, an additional 10% of disputed tax) as the price of that indulgence.
  • Such relief is self-executing: non-payment within the stipulated period automatically revives the original appellate dismissal without further court intervention.

Sections Involved

  • Section 73, WBGST/CGST Act, 2017 – original demand provision under which the underlying order was passed.
  • Section 107, CGST Act, 2017 – statutory appeal remedy and limitation/pre-deposit conditions.

Decision – In Favour of

In favour of the assessee — the appellate dismissal was set aside and the appeal permitted to be heard on merits, conditional on an additional 10% pre-deposit.

Case Details

High Court at Calcutta; WPA 242 of 2025; Coram: Hon'ble Justice Raja Basu Chowdhury; Date: 07.07.2025.

Link to Download the Order

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