GST Update on time lost due to technical glitch to be excluded for calculating period of limitation

The GST law was introduced with an intention to reduce the complexities of the taxpayers and streamline the tax compliances. Consequently, to develop the easy tax reform, the compliances are now digitised which includes electronic filing of appeal. However, this has also increased the miseries of taxpayers due to frictions/glitches in complying with the requirement of GST Laws. Recently, on similar parameters one case was reported before Allahabad High Court in the case of M/S BRIJ BIHARI SINGH V/S COMMISSIONER OF COMMERCIAL TAX. The decision imparted in this case is subject matter of discussion of our present update.
The petitioner challenged the order related to cancellation of GST registration pertaining to the period 2019-20. However, the appeal was rejected by the appellate authority on the grounds of being time barred. The registration of the petitioner was cancelled vide notice dated 28.02.2019 and the reply of which was submitted by the petitioner as on 12.03.2019. However, due to non appearance of petitioner, ex-parte order was passed dated 09.08.2019. The petitioner filed grievance that he was not able to file any appeal against the order due to malfunctioning/errors in functioning of the GSTN portal. The petitioner furnished evidence in form of screenshots in support of his contentions well. The error was resolved as on 17.09.2021 for which a ticket was also issued and e-mail was also received by the petitioner as on 20.09.2021. Therefore, the appeal was preferred on 20.09.2021. Furthermore, because of the technical glitch, the order dated 09.08.2019 was displayed again on the portal having a different reference number.
The Court observed the facts of the case. It was stated that the GSTN authorities themselves acknowledged the difficulty faced by the assessee ininstituting the appeal against the order dated 28.02.2019 by displaying the order yet again with different reference number. Further, there was evidence of resolving the difficulty on 17.09.2021 i.e. after the expiry of statutory period of limitation and extended period of limitation as per Section 107 of CGST Act, 2017. The Court stated that since the petitioner was disabled from filing of appeal electronically for reasons attributable solely to GSTN for no fault on the part of the petitioner, it is to be assumed that the order was made available to the assessee as on 17.09.2021 and not on earlier. This is because the GSTN authority resolved the glitch as on 17.09.2021 due to which assessee was not able to prefer an appeal against order dated 17.09.2019 before the said date. It was stated that the statutory right of appeal is not illusory remedy. It is an effective remedy within the statue to address the genuine grievances. Therefore, the appeal forum must be freely available to the assessee without any obstruction to access it. Recently, due to technical glitches, the period of limitation of filing of appeal against order dated 17.09.2019 expired which ideally should run from the 17.09.2021 instead. This is because of the fact that no appeal could be filed by the petitioner owing to the technical issues. For the period from 28.02.2019 to 17.09.2021, the period of limitation to file appeal must be suspended. Therefore, the appeal is admitted being within time. The matter is remanded back to the adjudicating authority to decide the case on merits within a period of 3 months from the date of copy of the order.
The above decision is a favourable decision for the business houses wherein lenient approach is taken as regards filing of appeal beyond the prescribed statutory period due to technical glitches on the GST portal, thereby giving shelter to the aggrieved taxpayer. It is well settled that default on account of technical lapses should not snatch the rights of appeal available to the assessee. It has been held in plethora of cases as well wherein it is held that substantial benefits should not be denied due to technical lapses. To illustrate, in the case of JOSE JOSEPH V/S ASSISTANT COMMISSIONER OF CENTRAL TAX AND EXCISE, Kerala High Court delivered that rejection of appeal as time barred by Appellate Authority is not justified when the department defaulted in complying with the statutory provisions. It is high time that revenue authorities should implement these decisions rather than turning blind eye and depriving the assessees oftheir substantive rights resulting into sheer wastage of time and increasing the disputes.

Comments

GST Update on time lost due to technical glitch to be excluded for calculating period of limitation

Post a Comment

Query