Suklal Hembram vs. State Of West Bengal And Ors.

Held

The Court held that the writ petition is maintainable before the High Court given that the Appellate Tribunal is yet to be constituted. The Court found that the writ petition requires consideration on merits, but a decision on factual issues would necessitate scrutiny of records. Therefore, it was deemed prudent to remand the matter back to the appellate authority. The order dated 31st May, 2024, passed by the appellate authority under Section 107 of the said Act was set aside. The appeal was remanded to the appellate authority for a decision on merits. The appellate authority was directed to hear and dispose of the appeal expeditiously, preferably within sixteen weeks. However, considering the 120-day delay in preferring the appeal, the petitioner was directed to pay Rs. 10,000/- towards costs to the State respondents within two weeks. Upon production of the cost payment receipt, the appellate authority would proceed to hear and dispose of the matter.

Facts

The petitioner, Suklal Hembram, filed a writ petition challenging an order dated 31st May, 2024, passed by the appellate authority under Section 107 of the West Bengal GST/CGST Act, 2017. The petitioner had received a show cause notice dated 10th April, 2023, under Section 73 of the Act for the tax period April 2021 to March 2022, alleging excess claim of Input Tax Credit (ITC) compared to GSTR-2A, and proposing disallowance under Sections 16(2)(c) and 16(4). The petitioner filed an appeal before the appellate authority, accompanied by an application for condonation of delay via e-mail. The appellate authority rejected the appeal solely on the ground of delay, without properly considering the condonation application. As the Appellate Tribunal was not yet constituted, the petitioner approached the High Court.

Key Issues

1. Whether the appellate authority erred in rejecting the petitioner's appeal on grounds of delay without adequately considering the application for condonation of delay, particularly when the Appellate Tribunal is not yet constituted? (Question of law and fact, turning on Section 107 of the WBGST/CGST Act, 2017). Petitioner's Arguments: The petitioner argued that the appellate authority failed to properly consider the application for condonation of delay filed along with the appeal. Since the Appellate Tribunal is yet to be constituted, the writ petition is maintainable before the High Court. The petitioner sought the writ petition to be considered on merits. Revenue's Arguments: The State respondents were represented by learned counsel. The judgment does not record specific arguments made by the State respondents regarding the merits of the case or the delay in filing the appeal, other than their appearance and representation.