GST appeal rejection quashed after authority ignored online filing date over technical glitch

Bombay HC allowed petitioner's writ petition challenging rejection of GST appeal as time-barred. The appellate authority had rejected the appeal filed under Section 107(1) of CGST Act, 2017, considering physical filing date rather than online filing date. HC held that petitioner was not prejudiced by technical glitch during initial filing on 25 June 2024, and appeal was properly re-filed on 12 July 2024 within condonable period under Section 107. The appellate authority erred in considering physical filing date when GST Portal clearly showed re-filing date as 12 July 2024. HC emphasized that before dismissing appeal on limitation grounds, authority must provide notice and opportunity to parties for clarification. Following precedents in Siemens Ltd and Bytedance cases, HC quashed the impugned order and remanded matter to appellate authority for fresh consideration on merits, directing that appeal be disposed of in accordance with law.

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ISSUES:

Whether the appeal against the Order-in-Original was filed within the prescribed time limit under Section 107(1) of the CGST Act, 2017.Whether the appellate authority erred in rejecting the appeal as time-barred without giving notice or opportunity to the appellant to clarify the date of filing.Whether the appeal filed through the GST Portal, but wrongly assigned due to a technical glitch, should be considered validly filed within the limitation period.Whether the appellate authority was required to hear the petitioner on the application for condonation of delay before rejecting the appeal.Whether the appellate authority's failure to hear the parties before concluding the appeal was barred by limitation was legally permissible.

RULINGS / HOLDINGS:

The appeal was filed within the prescribed time limit as per Section 107(1) of the CGST Act, 2017, considering the initial filing on 25 June 2024 and the re-filing on 12 July 2024 within the condonable period.The appellate authority erred in rejecting the appeal as time-barred without first giving the petitioner notice and opportunity to clarify and provide evidence of the date of filing.The technical glitch in the GST Portal assigning the appeal to the wrong appellate authority did not prejudice the petitioner and the appeal should be considered validly filed within the limitation period.The appellate authority was obliged to hear the petitioner on the application for condonation of delay and its failure to do so was improper.The appellate authority's decision to dismiss the appeal without hearing the parties was contrary to principles of natural justice and was set aside.

RATIONALE:

The Court applied Section 107(1) of the CGST Act, 2017, which prescribes the time limit for filing appeals and allows for a condonable delay of one month.Precedents from identical matters were considered, where appellate orders rejecting appeals on limitation grounds without hearing were quashed and remanded for de novo consideration.The Court emphasized the principle that an appellant should not be prejudiced due to technical glitches in the GST Portal, especially when the appeal was re-filed within the condonable period.The Court underscored the necessity of adhering to principles of natural justice, requiring the appellate authority to provide notice and hearing before rejecting appeals on limitation grounds.The ruling reflects a doctrinal insistence on procedural fairness and proper opportunity to be heard before dismissing appeals on technical or limitation grounds.

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