2025 (3) TMI 1091 - HC - GST

Dismissal of appeal on technical grounds - non-constitution of Tribunal - failure to comply with the legal mandate of making the pre-deposit - HELD THAT - Noting that the petitioner s appeal has been rejected on technical grounds and at present the Appellate Tribunal under Section 112 of the said Act is yet to be constituted one more opportunity should be granted to the petitioner to make payment of the pre-deposit as required under Section 107(6) of the said Act. The order dated 22nd May 2024 passed by the Appellate Authority rejecting the petitioner s appeal is set aside - Petition disposed off.

Summary

The Calcutta High Court, presided over by Justice Raja Basu Chowdhury, reviewed a writ petition challenging an order dated 22nd May, 2024, by the Appellate Authority in Form GST APL - 02. The petitioner contested a prior decision stemming from a show-cause notice issued under Section 73 of the WBSGST/CGST Act, 2017, which resulted in a demand in Form GST DRC 07 for the tax period July 2017 to March 2018.The petitioner appealed under Section 107 of the Act but failed to make the mandatory pre-deposit, leading to the appeal's rejection on 22nd May, 2024, due to non-compliance with Section 107(6). The petitioner argued that the non-compliance was due to an inadvertent error and sought the court's intervention to set aside the order and allow the pre-deposit to be made.The court acknowledged the technical nature of the rejection and the absence of a constituted Appellate Tribunal under Section 112. It decided to grant the petitioner another opportunity to make the pre-deposit within two weeks, either electronically or manually, via demand draft. Upon compliance, the Appellate Authority is directed to hear the appeal on merits within eight weeks, ensuring a reasonable opportunity for the petitioner to be heard. The writ petition was disposed of with no order as to costs.