Facts of the Case

Star Light House was aggrieved by an order dated 29th July, 2024 passed under Section 73 of the WBGST/CGST Act, 2017 for the tax period 2019-20, against which it filed a first appeal under Section 107. The appellate authority rejected the appeal on 9th June, 2025 on the ground of a 56-day delay in filing. The petitioners explained that the mother of one of the partners, who was looking after taxation matters, had been terminally ill with cancer and passed away on 15th December, 2024, disrupting the partner's ability to keep track of the appeal deadline. Recovery action followed, including a bank attachment in Form GST DRC-13 for the demand under the Section 73 order.

Issues Involved

  1. Whether the appellate authority exercised its discretion judiciously in rejecting condonation of a 56-day delay explained by a partner's family medical emergency, particularly where the return itself had been duly filed.
  2. Whether the bank attachment under Form GST DRC-13 should survive once the delay is found to deserve condonation and a pre-deposit has already been made.

Petitioner's Arguments

  • The delay of 56 days was solely on account of the terminal illness and subsequent death of the mother of the partner responsible for taxation matters, and the petitioners had otherwise duly complied with the statutory provision of filing the return; the delay related only to the appeal.

Respondent's Arguments

  • No specific counter is recorded beyond the appellate authority's own order, which had taken note of the explanation but still found it insufficient to condone the delay.

Court Order / Findings

  • The Court found that the appellate authority had mechanically rejected the appeal without appropriately considering the explanation for delay, holding that while discretion is vested in the appellate authority, it "must be exercised judiciously", and that rejecting a sufficiently explained 56-day delay — where the underlying return had been timely filed — did not reflect a judicious exercise of that discretion.
  • The appellate order was set aside, the delay condoned, and the matter remanded with a direction that the appeal be heard and disposed of on merits as expeditiously as possible, preferably within twelve weeks of communication of the order.
  • Noting that the petitioners had already made a pre-deposit of Rs.1,26,832/-, the Court held the bank attachment in Form GST DRC-13 could not be sustained and quashed it.

Important Clarification

  • The discretion to condone delay in filing a GST appeal under Section 107 must be exercised judiciously and cannot be applied mechanically; a genuine, well-documented personal hardship (such as a family member's terminal illness) affecting only the appeal filing — while the substantive statutory compliance (return filing) remained on time — is a strong ground for condonation.
  • Where an assessee has already made the statutory pre-deposit for an appeal, a bank attachment for enforcement of the same demand is liable to be lifted once the appeal is revived and pending on merits.

Sections Involved

  • Section 73, WBGST/CGST Act, 2017 — underlying demand order.
  • Section 107, WBGST/CGST Act, 2017 — appeal to the appellate authority, including condonation of delay.
  • Form GST DRC-13 — bank attachment for recovery, quashed given the pre-deposit already made.

Decision – In Favour of

The order is in favour of the Assessee. The delay was condoned, the appeal remanded for a merits hearing within twelve weeks, and the bank attachment quashed.

Case Details

Court: High Court at Calcutta, Constitutional Writ Jurisdiction, Appellate Side
Case No.: WPA 16726 of 2025
Coram: Hon'ble Justice Raja Basu Chowdhury
Date of Order: 3rd September, 2025

Link to Download the Order

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