Case Summary
Case Title: M/s Rashtriya Ispat Nigam Limited v. State of West Bengal & Ors.
Court: High Court at Calcutta (Constitutional Writ Jurisdiction, Appellate Side)
Petition Number: W.P.A 28840 of 2024
Judgment Date: 16.01.2025 (Reserved on 08.01.2025)
Category of Dispute: Input Tax Credit / Transitional Credits & Delay Condonation in Appeal
Relevant Sections: Section 73(9), Section 107(4) of the CGST Act, 2017
Facts (Paras 1–7)
The petitioner, Rashtriya Ispat Nigam Limited, a central PSU registered under GST, transitioned CENVAT and service tax credits into GST via TRAN-1. During scrutiny of July 2017–March 2018 returns, mismatches led to ASMT-10 notice and a confirmed ex-parte demand order (08.08.2023). Notices were uploaded only on the GST portal, leaving the petitioner unaware. An appeal filed on 11.07.2024 was delayed by 246 days. The appellate authority rejected it solely on limitation without considering merits.
Questions (Paras 1, 7–9)
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Whether the appellate authority was justified in rejecting the appeal only on limitation without examining reasons for delay?
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Whether delay condonation is permissible under Section 107(4) beyond statutory periods in exceptional cases?
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Whether principles of natural justice were violated by mechanical rejection?
Observations (Paras 8–11)
The Court noted that the petitioner had satisfactorily explained reasons for delay, particularly absence of proper communication of notices. The appellate authority acted mechanically, failing to consider bona fide reasons, rendering its order perverse. The Court relied on:
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Anhad Impex v. Assistant Commissioner (Del HC, 2024 (2) TMI 1070) – though held belated to raise Section 73(9) objections now.
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S.K. Chakraborty & Sons v. Union of India (Cal HC, 2023 SCC OnLine Cal 4759) – where it was ruled that appellate authorities can condone delay beyond the strict statutory cap in exceptional situations.
Judgement (Paras 12–15)
The Court quashed the appellate order dated 25.09.2024 as unsustainable. Delay was condoned directly by the High Court, and the appellate authority was directed to hear the appeal on merits within 12 weeks after granting fair opportunity to the petitioner. No order as to costs.
Table of Cases Referred
| Case | Court | Citation | Verdict |
|---|---|---|---|
| Anhad Impex & Anr. v. Asst. Commissioner Ward 16 Zone 2 Delhi & Ors. | Delhi HC | 2024 (2) TMI 1070 | Held that determination under Section 73(9) vitiated if principles of natural justice violated. |
| S.K. Chakraborty & Sons v. Union of India | Calcutta HC (DB) | 2023 SCC OnLine Cal 4759 | Held appellate authority empowered to condone delay beyond Section 107(4) statutory cap in exceptional cases. |
Between Fine Lines
For trade and industry, this ruling affirms that appeals dismissed only for delay, without considering genuine reasons like non-receipt of notices, can be challenged. Courts have shown willingness to condone even extended delays where principles of natural justice are compromised. Businesses should diligently track GST portal uploads but also know that unexplained rejections can be contested.
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