GST UPDATE

???? Desk of CA. Praveen Sharma Series-551 ????

CALCUTTA HIGH COURT IN THE CASE OF  Frontline (NCR) Business Solutions Private Limited   under Section 107(6) of the CGST Act

?Initial Appeal : The petitioner filed an appeal against a Section 73 order for the tax period July 2017 to March 2018. However, only 1% of the disputed tax was paid instead of the required 10%. The appeal was dismissed on January 31, 2024, for delay and non-compliance with pre-deposit requirements.

?Subsequent Appeal : After the dismissal, the petitioner filed another appeal on February 5, 2024, with the correct 10% pre-deposit. This appeal was also dismissed on May 28, 2024, for being filed late, and the petitioner did not respond to the show cause notice explaining the delay.

?Arguments :Petitioners' advocate Mr. Agarwal contends there was a delay of only 1 month and 7 days, and the matter was not decided on merits. He requests a remand for a fresh hearing. Respondent's advocate Mr. Chakraborty argues the appeals were defective and belated, with no proper explanation for the delay.

?Court's Decision: The court acknowledges no decision on merits and bona fide efforts by the petitioners. Considering the petitioner has paid over 11% of the disputed tax, the court sets aside the appellate authority's orders and remands the matter for a fresh hearing on merits.

?Direction : The appellate authority is to re-hear the appeal, ignoring the issue of maintainability and limitation, and without being influenced by the court’s observations.

?Affidavits : Since no affidavits were called for, allegations in the writ petition are not admitted by the respondents.

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CA. Praveen Sharma

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