Delay Conedoned as Appellate Order Uploaded Under Incorrect Portal Category Caused Reasonable Omission by Assessee
Issue
Whether the delay in filing a statutory GST appeal beyond the condonable period under Section 107 can be condoned when the order-in-original was uploaded under the incorrect portal tab (“Additional Notices and Orders” instead of “Notices and Orders”), preventing the assessee from accessing it in time.
Facts
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Demand Raised: For the tax period 2021-22, an Order-in-Original was passed against the petitioner raising a demand for allegedly wrongful Input Tax Credit (ITC).
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Incorrect Portal Upload: The tax authority uploaded the order on the GST portal under the category “Additional Notices and Orders” rather than the standard “Notices and Orders” section.
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Accidental Discovery: The petitioner did not routinely check alternative portal categories and only learned about the existence of the adverse order accidentally at a later date.
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System Rejection of Appeal: Upon attempting to lodge a statutory appeal online, the GST portal module rejected the submission, treating the appeal as time-barred under Section 107.
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Writ Petition: The petitioner filed a writ petition seeking condonation of delay beyond the statutory condonable limit, attributing the delay to the Revenue’s misplacement of the order on the online portal.
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Revenue’s Objection: The Tax Department opposed the petition, asserting that the limitation periods under Section 107 are absolute and cannot be extended.
Decision
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Bound by Statutory Limits: The court acknowledged that while the Appellate Authority itself remains strictly bound by the statutory limitation timeline under Section 107, extraordinary circumstances warrant judicial intervention under Article 226 [Para 9].
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Beyond Control of Assessee: The delay was directly attributable to circumstances beyond the petitioner’s control, specifically the uploading of the order under an incorrect portal tab by the Revenue [Para 9].
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Prevention of Grave Prejudice: Denying an adjudication on merits due to an administrative or portal navigation error would cause grave prejudice to the taxpayer [Para 10].
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Delay Condoned & Remand Directed: Following consistent judicial precedents in similar portal-related matters, the High Court condoned the delay and directed the Appellate Authority to entertain the appeal and decide it on merits [Para 10].
Key Takeaways
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Portal Technicalities Cannot Defeat Substantive Rights: Uploading statutory orders or notices under non-standard or obscure portal tabs (“Additional Notices and Orders”) excuses delays in filing appeals.
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Exhaustion of Section 107 via Writ Remedy: While the Section 107 Appellate Authority lacks statutory power to condone delay beyond the prescribed period, High Courts can exercise writ jurisdiction under Article 226 to condone delays caused by portal defects or administrative misplacement.
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Preference for Adjudication on Merits: Revenue proceedings should be resolved on substantive legal and factual merits rather than being shut out by procedural defaults originating from system navigation issues.