Jaishree Exports And Anr. vs. The Assistant Commissioner,Central Tax, Parkstreet Division, Kolkata South Commissionerate And Ors.

Facts

The petitioners, Jaishree Exports & Anr., have challenged an order dated December 5, 2022, passed by the appellate authority under the CGST Act. The appeal was dismissed by the appellate authority due to a delay of 38 days. The petitioners contend that this delay was caused by the illness of their tax consultant, as averred in paragraph 10 of the writ petition. The respondent is the Assistant Commissioner, Central Tax, Park Street Division, Kolkata South Commissionerate, and others, representing the CGST authority and the Union of India.

Held

The High Court set aside the impugned order of the appellate authority dated December 5, 2022. The Court found that dismissing the appeal on a minor delay of 38 days, especially when attributed to the illness of the tax consultant, was not in the interest of justice. The matter was remanded back to the appellate authority. The appellate authority is directed to decide the appeal on its merits after providing an opportunity of hearing to the petitioner or their authorized representatives. This decision is based on the principle that substantive justice should not be denied due to minor procedural lapses, particularly when reasonable cause is shown.

Key Issues

1. Whether the appellate authority was justified in dismissing the appeal on grounds of a minor delay of 38 days, considering the stated reason of the petitioner's tax consultant's illness, under the relevant provisions of the CGST Act? Petitioner's Argument: The petitioner argued that the delay in filing the appeal was minor and attributable to unavoidable circumstances, specifically the illness of their tax consultant. They sought condonation of this delay to have their appeal heard on merits. Revenue's Argument: The judgment does not record any specific arguments made by the CGST authority or the Union of India regarding the delay or the merits of the appeal.