Sunrise Wire Netting Industries And Ors vs. The Assistant Commissioner Of Revenue, N. S. Road Charge And Ors
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The petitioners, Sunrise Wire Netting Industries & Ors., are challenging an order dated 22nd February, 2023, passed by the appellate authority. This order dismissed their appeal on the grounds of non-payment of the pre-deposit required under Section 107(6) of the Central/West Bengal Goods and Services Tax Act, 2017. The disputed tax period is April, 2018 to March, 2019. The petitioners claim they were prevented from making the pre-deposit due to an unintended omission. The judgment also notes that the Appellate Tribunal under Section 112 of the said Act is yet to be constituted.
Held
The Court held that in the interest of justice, and considering the petitioners' willingness to deposit the pre-deposit and an additional Rs. 5000/- towards cost, the appellate authority should be directed to hear and dispose of the appeal arising from the order dated 7th February, 2022, passed under Section 74 of the said Act. The Court reasoned that the petitioners were prevented from depositing the pre-deposit by an unintended omission and that the Appellate Tribunal is yet to be constituted. Consequently, the order dated 22nd February, 2023, passed by the appellate authority, is set aside. The Court clarified that if the petitioners fail to make the required payment within 15 days, the writ petition would stand dismissed. The consequences of Section 107(7) of the said Act shall follow upon compliance.
Key Issues
1. Whether the appellate authority was justified in dismissing the petitioners' appeal solely on the ground of non-payment of the pre-deposit under Section 107(6) of the Central/West Bengal Goods and Services Tax Act, 2017, especially when the petitioners claim an unintended omission prevented them from depositing the amount and the Appellate Tribunal is yet to be constituted. Petitioner's Contention: The petitioners argued that they were prevented from making the pre-deposit due to an unintended omission and sought an opportunity to rectify this. They also implicitly relied on the fact that the Appellate Tribunal is not yet constituted, suggesting a procedural impediment. Revenue's Contention: The revenue's argument is not explicitly recorded in the judgment, but their stance is implied by the appellate authority's order dismissing the appeal for non-compliance with the pre-deposit requirement.
Sections Cited
Section 107(6), Section 107(7), Section 74, Section 112
AI-generated summary — verify with the full judgment below
M/L70 10.07.2024 sb Ct 5
IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURI ICTION APPELLATE SIDE
WPA 14085 of 2024
Sunrise Wire Netting Industries & Ors. Versus The Assistant Commissioner of Revenue & Ors.
Mr. Sukalpa Seal
Mr. B. Sengupta
… For the petitioners.
Mr. Anirban Ray
Md. T. M. Siddiqui
Mr. T. Chakraborty
Ms. S. Sanyal
… For the State.
The petitioners are aggrieved by the order dated 22nd February, 2023, dismissing the petitioners’ appeal on the ground that the petitioners did not make payment of the pre-deposit as is required for maintaining the appeal under Section 107(6) of the Central/West Bengal Goods and Services Tax Act, 2017 (hereinafter referred to as the said Act) for the tax period April, 2018 to March, 2019. 2. Having heard the learned advocates appearing for the respective parties and taking into consideration the fact that the petitioners, at this stage, are interested to put in the pre-deposit and the petitioners were otherwise prevented from putting in the pre-deposit by reasons of unintended omission and also taking note of the fact that the Appellate Tribunal under Section 112 of the
2 said Act is yet to be constituted, I am of the view that in the event the petitioners deposit Rs.5000/- towards cost with the GST authorities in addition to the pre- deposit as is required to be made for maintaining the appeal, the appellate authority shall hear out and dispose of the appeal arising from the order dated 7th February, 2022, passed under Section 74 of the said Act. In such event, consequence of Section 107 (7) of the said Act shall follow.
As a sequel thereto, the order dated 22nd February, 2023 passed by the appellate authority stands set aside.
It is made clear that if the petitioners do not make payment of the aforesaid cost and pre-deposit as is required for maintaining the appeal within a period of 15 days from date, the writ petition shall automatically stand dismissed and the benefit of this order shall not enure in favour of the petitioners.
With the above observations and directions, the writ petition stands disposed of without any order as to costs. Urgent Photostat certified copy of this order, if applied for, be made available to the parties upon compliance of requisite formalities. (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.