Delayed Appeal Condoned Subject to Costs: The “Additional Notices” Tab Trap

Delayed Appeal Condoned Subject to Costs: The “Additional Notices” Tab Trap

1. The Core Dispute: Missing the Order on the GST Portal

The assessee failed to file a statutory appeal within the prescribed limitation period against an adjudication order passed under Section 73.

• The Assessee’s Defense: They argued that the order was not visible in the standard “View Orders” tab on the GST portal. Instead, it was uploaded under the “Additional Notices and Orders” tab, which is less intuitive to access. Additionally, an employee had inadvertently deleted emails that might have contained the notification.

• The Revenue’s Stand: The Department argued that the assessee had knowledge of earlier notices and was participating in the process, so claiming ignorance of the final order was not a valid “sufficient cause” for the delay.

2. The Legal Analysis: Balancing Equities

The High Court acknowledged that the GST portal’s interface—specifically the placement of orders under secondary tabs—has been a recurring issue for taxpayers.

I. Validity of the “Additional Notices” Argument

The Court noted that while the explanation was not “fully satisfactory” (since the assessee already knew about the ongoing case), the placement of the order in an obscure tab can lead to genuine oversight.

II. Preservation of the Appellate Forum

The Court emphasized that the right to appeal is a substantive right. Dismissing an appeal solely on a technicality like a minor delay (especially when the GST Appellate Tribunal (GSTAT) is not yet fully functional) would deprive the assessee of a crucial forum to argue their case on merits.

3. The Ruling and Final Directions

To “balance the equities,” the Court allowed the appeal to proceed but imposed a financial penalty on the assessee for their negligence.

• Payment of Costs: The assessee must pay ₹20,000 to the State Legal Services Authority.

• Restoration of Appeal: Upon furnishing proof of this payment, the Appellate Authority is directed to:

  1. Set aside the order of dismissal.

  2. Condon the delay.

  3. Hear and decide the appeal on its merits.

Key Takeaways for Taxpayers

1. Check All Tabs Regularly: Adjudication orders are often placed under User Services > View Additional Notices and Orders. Do not rely solely on the “View Orders” tab.

2. Email Management: Courts are less sympathetic to “deleted emails” as a defense. Ensure your registered email ID is accessible to multiple responsible persons.

3. Section 107 Timelines: Under Section 107(1) and 107(4), you have 3 months + 1 month (condonable) to file an appeal. If you miss this window, you must demonstrate “sufficient cause” (like medical emergencies or technical portal issues) to seek relief from the High Court.