I Krab E Sol PVT LTD And Anr vs. The Joint Commissioner Of State Tax Behala Charge And Ors
Original PDF →Facts
The appellants, I-Krab E-Sol Private Limited & Anr., filed an intra-Court appeal against an order dated 11th June, 2025, passed by the learned Single Bench in W.P.A. 2160 of 2025. The writ petition had challenged an order from the appellate authority which dismissed the appellants' statutory appeal. The dismissal was based on the non-compliance with the mandatory pre-deposit condition stipulated under Section 107(6) of the WBGST Act/CGST Act, 2017. The appellants argued that they were facing severe financial difficulties.
Held
The Court agreed with the learned Single Bench that the appellants cannot bypass the statutory condition of pre-deposit under Section 107(6) of the WBGST Act/CGST Act, 2017, as it is mandatory. However, taking into consideration the appellants' submission regarding severe financial crisis, the Court provided a conditional relief. The appellants were directed to effect the pre-deposit within three months from the date of the order. If this condition is met, the appellate authority is to entertain the appeal petition and decide it on merits after affording a personal hearing. If the appellants fail to comply with the pre-deposit within the stipulated time, the appeal would stand automatically dismissed without further reference to the Court. No other issues were expressly left undecided.
Key Issues
1. Whether the appellants can bypass the mandatory pre-deposit condition under Section 107(6) of the WBGST Act/CGST Act, 2017, for filing a statutory appeal? Appellants' Contention: The appellants argued that they were undergoing severe financial crisis due to various factors, implying a need for leniency regarding the pre-deposit requirement. Revenue/State's Contention: The judgment does not record any specific arguments from the revenue or state. However, the appellate authority's initial decision, upheld by the learned Single Bench, indicates that the mandatory pre-deposit condition was not fulfilled.
Sections Cited
Section 107(6)
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT (Judgment of the Court was delivered by T.S. SIVAGNANAM, C.J.)
2 2
This intra-Court appeal filed by the writ petitioners is directed against an order dated 11th June, 2025 in W.P.A. 2160 of 2025. In the said writ petition, the appellants had challenged the order passed by the appellate authority dismissing the statutory appeal petition filed by the appellants on the ground that mandatory pre-deposit condition to be fulfilled under section 107(6) of the WBGST Act/CGST Act, 2017 has not been complied with.
We have perused the reasons recorded by the learned Single Bench and we are fully agree with the said reason as the appellants cannot bypass the statutory condition, which has been held to be mandatory. However, taking note of the submissions of Mr. Khan, learned advocate appearing for the appellants that the appellants are undergoing severe financial crisis on account of various factors, we dispose of this appeal with the following directions.
The appellants shall effect the pre-deposit, as required under the statute within a period of three months from date and if such deposit is made, then the appellate authority shall entertain the appeal petition and decide the same on merits and in accordance with law after affording an opportunity of personal hearing to the authorised representative of the appellants. However, if the appellants fail to comply with the above condition within the time prescribed, the benefit of this order will not enure to the appellants and the appeal would stand automatically dismissed without further reference to this Court.
3 3
With the above observations, the appeal and the connected application stand disposed of.
No costs.
Urgent photostat certified copy of this order, if applied for, be furnished to the parties expeditiously upon compliance of all legal formalities. (T.S. SIVAGNANAM) CHIEF JUSTICE I agree. (CHAITALI CHATTERJEE (DAS, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.