2024 (2) TMI 425 - HC - GST

Condonation of delay in filing appeal before the Appellate Authority - Petitioner filed the appeal within time along with a scanned copy of Order-in-Original as an annexure, but the hardcopy of the original order was forwarded to the Department of GST-I instead of GST-II inadvertently - HELD THAT - Section 107 of the GST Act stipulates filing of an appeal within a period of three months from the date on which the decision or order is communicated to the appellant and empowers the Appellate Authority to permit it to be presented within a further period of one month - In the instant case, appellant, on 26.11.2022 i.e. within five days of the filing of the appeal through the online portal, sent the hardcopy of the order appealed against by post to the Office of Commissioner of Central Tax. Petitioner subsequently learnt that the hardcopy of the original order was forwarded to the Department of GST-I instead of GST-II. There is no dispute that the petitioner filed the appeal within time along with a scanned copy of Order-in-Original as an annexure. Said filing was done within a period of three months, thereafter, petitioner sent the original Order-in-Original by post, however, to an incorrect Department - Action of the petitioner was clearly bonafide and the error was not of a nature that could have led to the order rejecting the appeal solely on the ground of limitation. Had the petitioner been informed immediately on the receipt by GST-I, petitioner would have rectified the error immediately, however, as per the communication placed on record by the petitioner, petitioner was informed by the officers of GST-I about the incorrect filing and immediately thereafter, petitioner took the remedial steps. Since the action of the petitioner is bonafide and petitioner appears to be diligently prosecuting the appeal, we are of the view that there is no delay attributable to the petitioner in filing of the appeal. Consequently, it is held that the appeal has been filed within time - the impugned order dated 18.05.2023 is set aside. Appeal is restored on the file of Appellate Authority i.e Commissioner of Central Sales Tax, Appeals-II. Said Officer is directed to dispose of the appeal in accordance with law on merits. Appeal allowed.

Summary

Issues Involved:
- Delay in filing appeal under the Goods and Services Tax Act, 2017

The judgment addressed the issue of delay in filing an appeal under the Goods and Services Tax Act, 2017. The petitioner challenged the dismissal of their appeal due to a delay of two months, which exceeded the permissible period of one month for condonation. The petitioner had initially applied for a refund on 27.06.2022, which was rejected on 25.08.2022. The appeal against this rejection was filed on 22.11.2022 through the online portal within the statutory period of three months. The digital record of the appeal included the scanned copy of the original Order-in-Original dated 25.08.2022, demonstrating timely filing.

The judgment cited Section 107 of the GST Act, which requires appeals to be filed within three months from the date of communication of the decision or order, with provision for a further one-month extension under certain circumstances. The unamended Rule 108 of the Central Goods and Services Tax Rules, 2017, applicable at the time of filing, outlined the procedure for filing appeals, including the submission of relevant documents within seven days and issuance of a final acknowledgment by the Appellate Authority.

The petitioner, within five days of online filing, sent the hardcopy of the order appealed against to the Commissioner of Central Tax. However, the hardcopy was mistakenly forwarded to the wrong department initially. Upon realizing the error, the petitioner promptly rectified it by collecting and submitting the documents to the correct department. The court acknowledged the petitioner's bonafide actions and diligence in prosecuting the appeal, concluding that the delay, if any, was not attributable to the petitioner and should be condoned. Consequently, the impugned order was set aside, and the appeal was restored for disposal on its merits by the Appellate Authority.

Furthermore, the judgment noted the subsequent amendment to Rule 108, effective from 04.08.2023, making online filing mandatory with limited exceptions for manual filing in exceptional circumstances. The addition of a proviso allowing for the upload of a self-certified copy of the order was highlighted. Ultimately, the appeal was allowed in favor of the petitioner, emphasizing the importance of bonafide actions and timely prosecution of appeals under the GST Act.