GST Appeal Filed Physically Due To Failure To File Digitally -Department Wrongly Rejected Appeal: Andhra High Court

The ruling denying the GST appeal that was not filed electronically was quashed by an Andhra Pradesh High Court panel led by Justice U. Durga Prasad Rao and Justice J. Uma Devi, in the case of Ali Cotton Mill v. Appellate Joint Commissioner.

The petitioner/assessee preferred to file a statutory appeal against the department’s assessment orders. The petitioner sought to file an appeal electronically under Rule 108 of the Andhra Pradesh Goods and Service Tax Rules (APGST Rules), however it was not received by the Department Website due to technical difficulties. As a result, the petitioner filed it with the department manually and received an acknowledgement.

The department, on the other hand, issued an appeal denial decision based solely on the fact that the assessee did not file the appeal electronically.

The order of rejection, according to counsel for the petitioner, was in violation of Rule 108 of the APGST Rules, 2017, which allows an assessee to file an appeal with the requisite forms and documentation “either electronically or otherwise as may be indicated by the Chief Commissioner.” As long as the Chief Commissioner did not specify a specific form for filing an appeal, the appellant was free to use either manner to file the appeal.

Counsel for the petitioner also stated that the assessee attempted to upload the appeal electronically through the department’s website, but was unable to do so due to technical difficulties, so he resorted to the manual way, which was accepted by the department’s office. The agency rejected the appeal merely because it had not been filed electronically, which was both unfair and illegal.

The department’s counsel, on the other hand, stated that the assessee was issued three check memoranda to comply with the faults in his appeal, and that the appellant has resorted to a writ petition, which is untenable. When the assessee meets the conditions set out in Rule 108(1) of the APGST Rules, 2017, i.e., submits the appeal with all of the required papers and forms, only the question of filing mode arises (i.e., either electronically or manually). The assessee has no right to Claim that his appeal, which was filed manually, should be allowed if he has not followed the check memos.

The court dismissed the department’s reasoning, noting that all check memoranda were issued only after the appeal was manually filed. The appeal was dismissed by the appellate authority not on the merits, but only because it was not lodged electronically by the assessee.

While allowing the appeal, the court directed the department to receive it, process it, and, if there are any flaws in the appeal, issue appropriate check notes for the assessee’s compliance. The petitioner must follow the check memos and resubmit the appeal, either online or physically, within the timeframe specified. After hearing the petitioner, the respondent shall assess the appeal and, in line with the controlling law and norms, issue an appropriate order on the merits.

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