2022 (5) TMI 348 - HC - GST

Maintainability of appeal - rejection of appeal on the ground of time barred - cancellation of petitioner's registration - HELD THAT - Whatever be the exact nature of communication sought to be made by the GSTN portal, it cannot be disputed that there exists clear evidence of admission made by the GSTN authority of difficulty faced by the petitioner in instituting his appeal against the order dated 28.02.2019, within the normal period of limitation, computed from the date of that order. Also, there is clear evidence of the said difficulty having been first resolved on 17.09.2021, well after expiry of the statutory period of limitation and the extended period of limitation, to file the appeal under Section 107 of the Act. Since the petitioner had been disabled from filing appeal (electronically) through the prescribed mode, against the order dated 28.02.2019, for reasons attributable solely to the GSTN authority and not for reasons attributable to the petitioner, it has to be assumed, for the limited purpose of the dispute at hand that the forum of appeal was first made available to the petitioner on 17.09.2021, and not earlier. It is so because 17.09.2021 was the date when GSTN authority first resolved the technical issues that had restrained or prevented the petitioner from approaching the appeal authority to file his appeal, against the order dated 28.02.2019. The statutory right of appeal is not an illusory remedy given to the assessee or a person aggrieved. It is an effective and real remedy granted within the structure of the statute to allow for redressal of genuine grievances - In face of clear evidence existing on record that such technical glitches were resolved by the GSTN authority on 17.09.2021, the period of limitation to file appeal started running from that date only. For the period 28.02.2019 to 17.09.2021, the period of limitation to file the appeal must always be deemed to have remained suspended for reason of appeal forum being not made available for filing of appeal by the petitioner, through prescribed mode. The appeal was filed by the assessee on 20.09.2021, within time. The Appeal Authority has completely erred in rejecting the appeal as time barred - Petition allowed.

Summary

Issues:
Challenge to order rejecting appeal as time-barred due to technical glitches in filing appeal through GSTN portal.

Analysis:
1. The petitioner challenged the order passed by the Additional Commissioner, Grade-2 (Appeal), Commercial Tax, Sonbhadra, rejecting the appeal as time-barred. The appeal was against the cancellation of the petitioner's registration under the U.P. GST Act, 2017.

2. The petitioner's registration was canceled by an ex parte order dated 09.08.2019 after a notice dated 28.02.2019. The petitioner faced difficulties in filing an appeal due to continued malfunctioning of the GSTN portal through which the appeal was to be filed.

3. Evidence was presented by the petitioner to establish the technical issues faced, including screen shots of attempted filings. The technical error in the GSTN portal was resolved on 17.09.2021, and the petitioner filed the appeal on 20.09.2021.

4. The court examined Section 107 of the Act and Rule 108 of the UP GST Rules, 2017, regarding the procedure to file an appeal. The statutory right of appeal is a real remedy to redress genuine grievances, and the appeal forum must be freely accessible within the statutory time limits.

5. The court concluded that the period of limitation to file the appeal started running from the date the technical glitches were resolved, i.e., 17.09.2021. As the appeal was filed on 20.09.2021, within this extended period, the rejection of the appeal as time-barred was erroneous.

6. The court allowed the writ petition, quashed the order dated 12.10.2021, and remitted the matter to the Appeal Authority to hear and decide the appeal on merits, treating it as filed within the statutory time limits.

7. Emphasizing the importance of timely resolution, the court directed the Appeal Authority to expedite the proceedings and decide the appeal preferably within three months from the date of the court's order.

This detailed analysis of the judgment highlights the issues involved, the legal arguments presented, and the court's reasoning in reaching its decision.