2022 (5) TMI 695 - HC - GST

GST appeals must be filed electronically with limitation period starting from portal upload date, not order date

The HC held that GST appeals must be filed electronically unless another mode is specifically notified. Since no notification prescribed an alternative ... Maintainability of appeal - time limitation - appeal came to be rejected on 30.7.2021 on the ground that it was filed beyond the period of limitation - Rule 108(1) of the Central Goods and Services Tax Rules, 2017 - HELD THAT:- The appeal is required to be filed in an electronic mode only and if any other mode is prescribed, then, the same is required to be notified by way of a notification. There is nothing on record to show that any notification was issued prescribing any other mode by which an appeal could be filed. Therefore, the argument of the learned counsel for the petitioner that the time period for filing appeal would start only when the order is uploaded in GST portal cannot be brushed aside more so, in view of the Division Bench Judgment of the Gujarat High Court in GUJARAT STATE PETRONET LIMITED VERSUS UNION OF INDIA THROUGH SECRETARY [2020 (9) TMI 427 - GUJARAT HIGH COURT], which has been placed before this Court. Thus, filing of appeal by the petitioner on 03.12.2020 is within the period of limitation - the matter is remanded back to respondent No.2 for adjudicating the dispute on merits in accordance with law. Issues:1. Validity of order rejecting appeal on the ground of limitation.2. Interpretation of time period for filing appeal under CGST Act.3. Compliance with rules for filing appeals electronically.Issue 1: Validity of order rejecting appeal on the ground of limitationThe petitioner, a Private Limited Company engaged in manufacturing, filed a writ petition challenging the rejection of its appeal in Appeal No.10/2020(T)GST on the ground of being filed beyond the period of limitation. The petitioner contended that the appeal was rejected due to limitation, not lack of material, and argued that the appeal was filed within the extended period granted by the Hon'ble Supreme Court due to the pandemic. The respondent opposed, stating that the rejection was based on limitation. However, the Court noted the extension of the time period by the Supreme Court and held that the appeal filed on 03.12.2020 was within the period of limitation. Consequently, the order rejecting the appeal was set aside, and the matter was remanded for adjudication on merits.Issue 2: Interpretation of time period for filing appeal under CGST ActThe Court examined the provisions of Section 107 of the CGST Act, which stipulate a three-month period for filing appeals from the date of communication of the decision or order. The petitioner argued that the period for filing an appeal should start from the date the order was uploaded electronically, as per Rule 142(5) of CGST/SGST Rules. The Court observed that no notification prescribing an alternative mode for filing appeals was issued. Referring to a Gujarat High Court judgment, the Court agreed with the petitioner's interpretation that the appeal period commences when the order is uploaded on the GST portal. Moreover, the Supreme Court's extension of the time period further supported the petitioner's position.Issue 3: Compliance with rules for filing appeals electronicallyRule 108 of the CGST Rules mandates that appeals must be filed electronically unless notified otherwise. The absence of any notification allowing alternative filing methods led the Court to uphold the petitioner's argument that the appeal period begins upon electronic uploading of the order. The Court's decision was influenced by the Gujarat High Court's judgment and the Supreme Court's extension of the time period for filing appeals. Consequently, the appeal filed by the petitioner was deemed within the limitation period, leading to the setting aside of the order rejecting the appeal.In conclusion, the High Court of Andhra Pradesh, in a detailed analysis, addressed the issues of validity of the appeal rejection, interpretation of the time period for filing appeals under the CGST Act, and compliance with rules for electronic filing. The Court's decision favored the petitioner, setting aside the rejection of the appeal and remanding the matter for further adjudication on merits.