GST Update No 296 on time period to file appeal starts from date of uploading the order

The issue regarding filing of appeal within prescribed time period is exposed to litigations since digitization introduced in GST regime. In the erstwhile indirect tax regime, the period of limitation started from the date of receipt of certified copy of order but in the GST regime, the order is deemed to have been received by the assessee on the date on which it is being uploaded on the GST portal. However, the revenue authorities have not been accustomed to the digitization of appeal mechanism and often dispute the appeals on the grounds of limitation such as starting date to be treated as date on which order was physically delivered or e-mail sent. Resultantly, assessee has to knock the doors of courts to seek relief. Recently, one more case was reported before Andhra Pradesh High Court in the case of NAVYA FOODS (P) LTD. V/S SUPERINTENDENT OF CENTRAL TAX wherein the appeal was rejected as time barred. The decision imparted in this case is subject matter of discussion of our present update.
The petitioner filed Writ petition under Article 226 of the Constitution of India. The petitioner is a private limited company engaged in manufacture of jams, fruit jellies etc. and is registered under CGST Act, 2017. It was noticed upon verification that the GSTR-3B filed during the FY 2018-19 were filed beyond the due date and therefore, interest is to be paid on delayed payment under CGST/SGST/IGST. Therefore, interest along with penalty was demanded. A show cause notice in this respect was issued as on 25.04.2019 and thereafter an assessment order was passed dated 15.11.2019 confirming the levy of interest and penalty which was higher than proposed in show cause notice. It was observed that the order was served physically to the assessee on 25.11.2019.
The petitioner filed an appeal which was rejected on 30.07.2021 on the groundthat it was filed beyond the period of limitation. The counsel of petitioner submitted that in accordance with Rule 142 of CGST Rules, 2017, summary of the order issued under Section 73 shall be uploaded electronically specifying the amount demanded from the assessee. Accordingly, the summary order was uploaded on 18.11.2021 and hence, the period of limitation shall be reckoned from that date. Reliance in this respect was placed on decision of Gujarat High Court in the case of GUJARAT STATE PETRONET LIMITED V/S UNION OF INDIA.
The counsel of respondent opposed the submissions of petitioner and argued that the reason of rejection is not lack of material instead ground of limitation and hence, the argument of petitioner that no appeal could be filed cannot be accepted. However, it was further submitted that in view of the orders passed by the Hon’ble Supreme Court extending the period of limitation, it is on the discretion of Court to pass appropriate orders.
The Court referred to the provisions of CGST Act and CGST Rules, 2017. It was crystal clear that the appeal is required to be filed in an electronic mode or any other prescribe mode as notified by way of notification. However, any other mode has not been prescribed till date. Therefore, the arguments of petitioner that time period for filing appeal would start only when the order is uploaded in GST portal cannot be side-lined. Reference was drawn to decision of Gujarat High Court and suo-moto order of Supreme Court of extension of period of limitation. It was further stated that the order was sent by e-mail to the petitioner on 25.11.2019 and period of three months’ time would expire on 24.2.2020 and another one month from there would be on 24.3.2020. Therefore, it was stated that the appeal filed by petitioner is within time if the extension order of Supreme Court is made applicable. Therefore, the impugned order is set aside and case is remanded back for adjudicating the dispute on merits as per law.
The above decision affirms that the period of limitation shall commence when the order is uploaded on the GST portal. Furthermore, Section 169 of CGST Act, 2017 recognises communication by e-mail on the registration application of the taxpayer and service of order on common portal as valid methods of service of notice to the taxpayer. Reference can be drawnto the decision of Kerala High Court in the case of M/S PEE BEE ENTERPRISES V/S ASSISTANT COMMISSIONER wherein it was affirmed that making order available on the common portal or mailing the order to the registered mail id of the taxpayer is proper service of order to the taxpayer. We have even discussed the same in GST updates number 124/2020-21 dated 27.8.2020. Nevertheless, there are various issues in the practical life wherein the taxpayers create a separate mailing ID for the purpose of GST registration and they fail to check the same on regular basis. Consequently, the taxpayers miss taking actions against the notices and orders mailed to them. Therefore, it is high time that the taxpayers realise that they should regularly check their e-mails and GST portal to keep track record of any notices/orders otherwise they will have to fight the battle of litigation to seek relief.

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GST Update No 296 on time period to file appeal starts from date of uploading the order

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