2022 (1) TMI 50 - HC - GST

Tax authorities' failure to upload order on web portal excuses delay in electronic appeals filing

Jose Joseph, Versus Assistant Commissioner Of Central Tax And Central Excise, Alappuzha, Additional Commissioner (Appeals), Kochi, The Union Of India

Kerala HC held that where tax authorities failed to upload an order on the web portal preventing electronic filing of appeals as prescribed, the ... Right to appeal - Order was not uploaded on the portal - Refund of unutilized input tax credit - grievance of the writ petitioner arises from the allegation that Ext.P1 order was never uploaded in the web portal of the respondents and hence, the petitioner could not file appeals in the electronic form - Principles of natural justice - HELD THAT:- It is the admitted case of both the petitioner and the respondents that the orders impugned in the appeals, though dated 29.03.2019, were never uploaded in the web portal to enable the petitioner to prefer the electronic filing of appeals, as prescribed. There is no quarrel that the Commissioner has not issued any notification specifying any other form of appeal. However, on the basis of receipt of a copy of the order on 10.04.2019, the petitioner preferred appeals manually only on 09.01.2020, with a delay of 184 days - Thus, after referring to the decision in DEBABRATA MISHRA VERSUS THE COMMISSIONER OF CT AND GST, ADDL. COMMISSIONER, CT AND GST, CT AND GST OFFICER [2020 (3) TMI 1204 - ORISSA HIGH COURT] and ASSISTANT COMMISSIONER (CT) LTU, KAKINADA & ORS. VERSUS M/S. GLAXO SMITH KLINE CONSUMER HEALTH CARE LIMITED [2020 (5) TMI 149 - SUPREME COURT] the Appellate Authority dismissed the appeals as time-barred. When admittedly there was a failure on the part of the respondents to upload the order in the original, petitioner cannot be mulcted with the responsibility of preferring appeals within the time period stipulated. The time period stipulated in the statute for filing an appeal is part of the same transaction that exists with the uploading of an order in the original - When the mode of appeal prescribed by Rules is only the electronic mode, the time limit of three months can start only when the assessee had the opportunity to file the appeal in the electronic mode. The assessee cannot be blamed if he waited for the order to be uploaded to the web portal, even if he had in the meantime received the physical copy of the order. The petitioner is entitled to have his appeals that were filed manually, to be treated as having been filed within time - Petition allowed. Issues Involved:Appeal for refund of unutilized input tax credit; Rejection of appeals on the ground of limitation; Filing appeals in electronic form; Delay in filing appeals; Applicability of time limits for filing appeals; Failure to upload order in web portal; Manual filing of appeals; Interpretation of statutory provisions; Technical glitches in GST regime.Analysis:1. Appeal for Refund of Unutilized Input Tax Credit:The petitioner filed four writ petitions seeking identical reliefs for different months of the same assessment year, aggrieved by the rejection of appeals for refund of unutilized input tax credit. The assessing authority partly rejected the refund claims for the months of July, August, September, and October 2017.2. Rejection of Appeals on the Ground of Limitation:The petitioner's grievance arose from the delay in filing appeals due to the non-uploading of the rejection order in the web portal, preventing electronic filing within the prescribed time. The Appellate Authority rejected the appeals as time-barred, citing a lack of provision for condoning delays exceeding 30 days.3. Filing Appeals in Electronic Form and Delay:The petitioner argued that the failure to upload the rejection order in the web portal hindered electronic filing within the stipulated time. Despite preferring manual appeals, a delay of 184 days occurred, leading to dismissal by the Appellate Authority as time-barred.4. Interpretation of Statutory Provisions:The Court analyzed provisions under the Central Goods and Services Tax Act, 2017, emphasizing the requirement for filing appeals within three months from the date of order communication, extendable by one month for sufficient cause. The Rules specified Form GST APL-01 for appeal presentation, electronically or otherwise as notified by the Commissioner.5. Failure to Upload Order in Web Portal and Manual Filing:Acknowledging the non-uploading of the rejection orders, the Court noted the absence of a notification specifying manual appeal filing. The petitioner's manual appeals, filed after receiving the physical copy of the order, were deemed time-barred by the Appellate Authority.6. Technical Glitches in GST Regime:Recognizing challenges during the transition to the GST regime and technical imperfections in electronic processes, the Court stressed the need for a pragmatic approach. Referring to a similar Gujarat High Court case, the Court emphasized the importance of order upload for appeal timelines to commence.7. Judgment and Relief Granted:The Court set aside the Appellate Authority's orders, directing the appeals to be treated as filed within time due to the department's failure to upload the rejection orders. The Appellate Authority was instructed to review the appeals on merits, affording the petitioner a fair hearing.In conclusion, the judgment highlighted the significance of order upload for appeal timelines, especially in the context of technical challenges during the GST regime transition. The Court's decision favored the petitioner, emphasizing the need for a practical approach in addressing procedural complexities and ensuring fair treatment in appeal processes.