In a recent decision, the Calcutta High Court addressed a case involving Ramdiha Mercantile Pvt. Ltd. and the Deputy Commissioner of State Tax, among others. The case revolved around an adjudication order issued on July 9, 2023, which was passed ex parte under Section 73(9) of the West Bengal Goods and Services Tax (WBGST) Act. The company filed an appeal under Section 107, but it was dismissed for being filed beyond the permissible period for condonation, thus rendering it time-barred.
Upon making an intra-court appeal, the assessee requested an additional opportunity to reconcile its records. The main issue was whether the company could be granted another chance to present its case despite the appeal being time-barred. The Division Bench upheld the initial adjudication order, noting that the company had not participated in the proceedings or responded initially, and therefore, the appellate authority had rightly dismissed the appeal as time-barred.
However, considering that the company was an ongoing business and had expressed a desire for reconciliation, the Court decided to grant one final opportunity to the assessee. This opportunity was conditional on the company depositing an additional 10% of the disputed tax amounting to ₹21,81,173 within 15 days. The Court instructed the Adjudicating Authority to treat the prior adjudication order as a show cause notice, allowing the company to respond and attend a personal hearing. A fresh order on merits was to be issued within 15 days following the hearing.
Date of Order: 21 August 2025
Parties: Ramdiha Mercantile Pvt. Ltd. v. Deputy Commissioner of State Tax & Ors
Facts –
- Adjudication order dated 09.07.2023 passed ex parte under Section 73(9) WBGST Act. Appeal u/s 107 was filed beyond condonable period and dismissed as time-barred.
- On intra-court appeal, assessee requested another opportunity to reconcile records.
Issue –
- Whether assessee can be granted another opportunity despite appeal being time-barred under Section 107?
Order –
- The Division Bench held that the adjudication order under Section 73(9) could not be faulted since the assessee did not participate or reply, and the appellate authority rightly dismissed the statutory appeal as time-barred.
- However, considering the assessee is a running business and sought reconciliation, the Court granted one final opportunity to present its case before the Adjudicating Authority.
- This opportunity was made conditional upon the assessee depositing 10% of the disputed tax (₹21,81,173) in addition to earlier deposit, within 15 days.
- The Adjudicating Authority was directed to treat the earlier adjudication order as a show cause notice, allow reply and personal hearing, and then pass a fresh order on merits within 15 days of hearing.
