GST Appeal Filed on 90th Day from Email Communication of Order is Valid: Karnataka HC directs to Hear Appeal [Read Order]

The Karnataka High Court has held that an GST ( Goods and Services Tax ) appeal filed on the 90th day from the date of email communication of an order is valid and must be heard on merits.

The petitioner, a registered dealer under the CGST/SGST Act, 2017, approached the High Court challenging the rejection of their appeal by the Joint commissioner of commercial taxes. He sought relief against the consequential rectification order dated 13.01.2025, urging the court to direct the respondent to admit the appeal filed on 22.03.2024 and decide it on merits.

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The issue arose from an order passed under Section 73(9) and 73(10) of the GST Act, 2017, dated 20.12.2023, which was communicated to the petitioner via email on 22.12.2023. The petitioner filed an appeal on 22.03.2024, which was exactly the 90th day from the date of communication.

However, the Joint commissioner of commercial taxes dismissed the appeal, citing a delay of two days. The petitioner later filed a rectification application along with an affidavit seeking condonation of delay, but this was also rejected on 13.01.2025.

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Following the dismissal, the petitioner filed a rectification application along with an affidavit requesting the condonation of any delay. However, this application was also dismissed by the Joint commissioner of commercial taxes  on 13.01.2025. The petitioner argued that the dismissal was arbitrary and contrary to the legal provisions mandating a hearing before rejecting an appeal on procedural grounds.

The Additional Government Advocate, representing the respondent, contended that the order was uploaded on the GST portal on 20.12.2023, and the petitioner failed to verify it in time.

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However, the High Court, upon perusing the writ petition and hearing both parties, held that the appellate authority should have exercised its discretion under Section 107(1) and (2) of the GST Act and entertained the appeal on merits.

The bench of Justice S.G. Pandit observed that as per Section 169 of the GST Act, one of the prescribed modes of communication is via email. Since the appeal was filed on the 90th day from the date of email communication, it was within the permissible time frame. Furthermore, the Court held that even if there was a delay, the rectification application seeking condonation should have been considered judiciously by the appellate authority.

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Setting aside the impugned orders, the Court directed the authorities to hear the appeal on merits and pass an appropriate order in accordance with the law.

To Read the full text of the Order CLICK HERE

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