Snehlata And Sons vs. State Of West Bengal And Ors.
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The petitioner, Snehalata & Sons, filed a writ petition challenging an order dated April 9, 2024, passed by the appellate authority under Section 107 of the CGST/WBGST Act, 2017. This order dismissed the petitioner's appeal against an order dated December 29, 2023, passed under Section 73 of the said Act for the tax period July 2017 to March 2018. The dismissal occurred because the petitioner failed to deposit the entire pre-deposit amount required for maintaining the appeal, citing financial crisis. The petitioner had applied for an extension of time to make the payment, but the appellate authority proceeded to dismiss the appeal without considering this application.
Held
The Court held that since the petitioner could not make the entire pre-deposit due to financial stringency and expressed a current willingness to pay, justice would be subserved by granting a further opportunity. The Court noted that the petitioner cited financial stringency as the reason for non-payment and was now interested in making the payment. Therefore, the Court directed the petitioner to deposit the balance pre-deposit within two weeks. If the deposit is made within the stipulated time, the appellate authority is directed to hear and dispose of the appeal on merits. The order of the appellate authority dated April 9, 2024, was set aside. The Court clarified that if the petitioner fails to make the payment within the prescribed time, the benefit of this order would not enure, and the writ petition would stand dismissed.
Key Issues
1. Whether the appellate authority erred in dismissing the petitioner's appeal for non-deposit of the entire pre-deposit amount, despite the petitioner citing financial crisis and seeking an extension of time, thereby violating principles of natural justice and the intent of Section 107 of the CGST/WBGST Act, 2017? Petitioner's Arguments: The petitioner contended that the dismissal of the appeal by the appellate authority was erroneous as it overlooked the petitioner's application for an extension of time to deposit the pre-deposit due to financial difficulties. They argued that the order under Section 73 severely prejudices them and sought restoration of the appeal with permission to deposit the balance amount. They relied on the principle that justice would be subserved by granting a further opportunity. Revenue's Arguments: The State argued that the appellate authority was justified in dismissing the appeal because the petitioner failed to comply with the mandatory requirement of depositing the pre-deposit amount for maintaining the appeal. They asserted that there was no irregularity in the appellate authority's action.
Sections Cited
Section 107, Section 73
AI-generated summary — verify with the full judgment below
2024 Item No. ML 49 Saswata
W.P.A. 15204 of 2024 Snehalata & Sons versus The State of West Bengal & Ors. Mr. Avra Mazumder Ms. Alisha Das Mr. S.Bhowmik Mr. Samrat Das Ms. Elina Dey Mr. S.N.Banerjee …For the petitioner Mr. Anirban Ray, Ld. GP Mr. Md. T.M.Siddiqui Mr. Tanoy Chakraborty Mr. S. Sanyal Mr. D. Sahu …For the State
Affidavit of service filed in Court today is retained with the record.
Challenging an order dated 9th April 2024 passed by the appellate authority under Section 107 of the CGST/WBGST Act, 2017 (hereinafter referred to as the “said Act”), this instant writ petition has been filed.
Mr. Majumder, learned advocate appearing for the petitioner submits that being aggrieved by an order passed under Section 73 of the said Act dated 29th December 2023 for the tax period from July 2017 to March 2018, an appeal was filed before the appellate authority. Unfortunately, by reasons of financial crisis, the petitioner could not deposit the entire pre-deposit as is required for maintaining the appeal. For reasons as aforesaid, the appellate authority, by an order dated 9th April 2024 was, inter alia, pleased to dismiss the said appeal.
Mr. Mazumder submits that the petitioner had all good intentions to pay. Unfortunately, it is by reason of the financial crisis that the petitioner could not make payment. The petitioner had, in fact, applied for extension of time to make payment. The appellate authority, however, by glossing over such application, had proceeded to dismiss
2 the said appeal. He further submits that this Court may be pleased to restore the aforesaid appeal and permit the petitioner to deposit the balance amount, as the order passed under Section 73 of the said Act dated 29th December 2023 severely prejudices the petitioner.
Mr. Ray, learned Government Pleader submits that since the petitioner did not deposit the pre-deposit as is required for maintaining the appeal, the appellate authority had dismissed the said appeal. According to him, there is no irregularity on the part of the appellate authority in dismissing the appeal.
Heard the learned advocates appearing for the respective parties and considered the materials on record.
Admittedly, in this case I find that since the petitioner could not make payment of the entire pre- deposit, the appeal had been dismissed. It is noticed that the petitioner cited financial stringency as the ground for non payment of the pre-deposit. Since the petitioner is now interested to make payment and having regard to the financial condition of the petitioner as noted above, I am of the view that justice would be subserved if a further opportunity is granted to the petitioner to make the pre-deposit.
In view thereof, the petitioner is directed to deposit the balance pre-deposit with the respondents within a period of two weeks from date. In the event, the petitioner deposits the aforesaid amount within the aforesaid period, the appellate authority shall hear out and dispose of the appeal on merits in accordance with law. As a sequel thereto, the order passed by the appellate authority on 9th April 2024 stands set aside.
3
It is made clear that if the petitioner does not make the aforesaid payment within the time prescribed as aforesaid, the benefit of this order shall not enure to the petitioner and the writ petition shall automatically stand dismissed.
With the above observations and directions, the writ petition being WPA 15204 of 2024 is accordingly disposed of without any order as to costs.
All parties shall act on the basis of the server copy of this order duly downloaded from this Court’s official website. (Raja Basu Chowdhury, 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.