Mrinal Chakraborty vs. State Of West Bengal And Ors.

Held

The Court held that Section 5 of the Limitation Act, 1963, is applicable to appellate proceedings under Section 107 of the SGST/CGST Act, 2017. The Court found the petitioner's explanation for the 196-day delay to be plausible and not indicative of willful or deliberate dereliction. The explanation, which cited the departure of his accountant and his wife's medical condition, was considered sufficiently explained, especially in light of the annexed medical documents. Consequently, the Court accepted the explanation and condoned the delay. The impugned order of the appellate authority was set aside, and the matter was remanded to the appellate authority to hear the appeal on its merits. The ratio decidendi is that a delay in filing a GST appeal can be condoned under Section 5 of the Limitation Act, 1963, if a plausible and sufficient cause is demonstrated, and the delay is not due to willful neglect.

Facts

The petitioner, Shri Mrinal Chakraborty, filed an appeal under Section 107 of the SGST/CGST Act, 2017, challenging an order dated April 29, 2024, passed under Section 73 of the same Act. The appeal was filed on February 12, 2025, with a delay of 196 days. The appellate authority dismissed the appeal due to dissatisfaction with the petitioner's explanation for the delay. The petitioner's explanation for the delay included his accountant leaving the firm without notice, making it difficult to retrieve GST records, and his wife's heart ailments requiring his attention. The petitioner relied on a previous judgment, Biswajit Das v. The State of West Bengal & Ors., which held that Section 5 of the Limitation Act, 1963, is applicable to appeals under Section 107 of the GST Act.

Key Issues

1. Whether Section 5 of the Limitation Act, 1963, is applicable to an appellate proceeding under Section 107 of the SGST/CGST Act, 2017, for condoning delay in filing the appeal? Petitioner's arguments: The petitioner contended that Section 5 of the Limitation Act, 1963, is applicable to appellate proceedings under Section 107 of the SGST/CGST Act, 2017. He relied on the judgment of a Coordinate Bench of this Court in Biswajit Das v. The State of West Bengal & Ors. to support this contention, arguing that the appellate authority should have condoned the delay if sufficient cause was shown. Revenue/State's arguments: The judgment records no specific arguments made by the State or Revenue regarding the applicability of the Limitation Act or the sufficiency of the cause for delay.