Understanding Appeal Acceptance Post Limitation

Introduction

In a recent legal development, the Hon’ble Calcutta High Court addressed the pivotal question of whether an appeal can be accepted after one month from the prescribed period of limitation. This article delves into the court’s decision and its ramifications for similar cases.

Facts of the Case

Mr. Sushil Kumar Hazra (“the Petitioner”) received an Adjudication Order under FORM GST DRC-07 on September 5, 2023. He subsequently filed an appeal with the Appellate Authority on February 6, 2024, which was dismissed as it was filed beyond the limitation period.

Issue

The core issue before the court was whether an appeal could be entertained after one month from the prescribed period of limitation.

Held

The Hon’ble Calcutta High Court, in Writ Petition Application No. 11649 of 2024 dated May 16, 2024, made the following observations and rulings:

Background of the Case

The petitioner, citing medical reasons, explained the delay in filing the appeal to the Appellate Authority. Despite this, the appeal was dismissed under FORM GST APL-02 on March 6, 2024.

Submission and Response to Show Cause Notice

Upon receiving a Show Cause Notice dated February 16, 2024, the petitioner responded, emphasizing the medical grounds for the delay in filing the appeal. The petitioner also appeared before the Respondent to explain the delay.

Dismissal of the Appeal and Subsequent Writ Petition

Displeased with the dismissal of the appeal, the petitioner filed a writ petition seeking relief against the Impugned Order.

Legal Analysis of the Issue

The Hon’ble Calcutta High Court referenced the case of S.K. Chakroborty & Sons [2023 SCC Online Cal. 4759], highlighting the failure of the Appellate Authority to exercise its jurisdiction in similar circumstances. It noted that despite accepting the medical certificate provided by the petitioner, the authority failed to justify its decision to dismiss the appeal solely based on the time limitation.

Jurisdictional Review of Precedent

The court criticized the authority for not considering the medical certificate and for penalizing the petitioner despite complying with other statutory obligations promptly.

Examination of Medical Certificate and Business Operations

The court observed that the petitioner fulfilled statutory obligations by submitting FORM GSTR-1 and FORM GSTR-3B in due time, despite the medical condition.

Critique of Appellate Authority’s Discretion

The Hon’ble Court opined that the discretionary power of the authority was unjustifiably exercised and emphasized the importance of considering valid reasons for delay, such as medical conditions, in the appeals process.

Justification of Condonation in Special Circumstances

Concluding, the Hon’ble Calcutta High Court directed the Appellate Authority to reconsider the appeal and dispose of it on merit. It stressed the expeditious handling of the case, aiming for resolution within six weeks from the date of communication of its order