2024 (12) TMI 931 - HC - GST

Dismissal of appeal on the ground that there is a delay in filing the appeal, without providing any opportunity of being heard - violation of principles of natural justice - HELD THAT - Admittedly, the grounds relating to the delay in filing the appeal was not put to the petitioner by respondent No. 2. Respondent No. 2 ought to have brought to the notice of the petitioner to show cause as to why the appeal should not be dismissed on the ground of delay and ought to have sought explanation. Having not done so, there is a breach of natural justice. In so far as the grounds relating to the non-filing of board resolution authorising Mr. Udeshi are concerned, the petitioner submitted that they were under a bona fide belief that he, being Executive Director, would not require the resolution. Come what may be, without going into the legality of the same, since on the ground of delay in filing the appeal no opportunity was accorded to the petitioner, the impugned Order-in-Appeal dated 7 August 2024 is quashed and set aside and the respondent No. 2 is directed to issue defect memo to the petitioner of the defects in filing the appeal and give adequate opportunity to rectify the same. On rectification of the said defects, the respondent No. 2 to hear the appeal on merits and pass a speaking order. Petition disposed off.

Summary

The High Court of Bombay quashed an Order-in-Appeal due to a breach of natural justice as the petitioner was not given an opportunity to explain the delay in filing the appeal. The court directed the respondent to issue a defect memo to rectify the filing defects and hear the appeal on merits. The court cited previous similar cases where appeal orders were set aside and remanded back for proper consideration. The court kept all rights and contentions open and disposed of the rule without costs.