The Bombay High Court, in a significant ruling, held that where an Order of Cancellation of Registration under GST Act was uploaded on the GST Portal without signature, the limitation for filing appeal cannot start at all until the signature is affixed on such an order.
A division bench of Justice K.R. Shriram and Justice A.S. Doctor was considering the matter, Ramani Malushte v Union of India and Ors, wherein an Order of Cancellation of GST registration was passed on 14 November 2019. This order was neither digitally nor manually signed but was merely uploaded on the GST Portal. The assessee got “attestation” on this order only after 1.5 years, that is on 19 May 2021 when an attested copy was required to be filed before First Appeal officer. The appeal was dismissed as time barred by the First Appeal stating that since the limitation and condonation period was over before the Supreme Court COVID order was passed, the appeal was not maintainable. The first appeal officer counted limitation from 14 November 2019.
“In the affidavit in reply it is not denied that the order in original dated 14th November 2019 was not digitally signed. In the affidavit in reply it is specifically stated that the show cause notice was digitally signed by the issuing authority but when it refers to the order in original dated 14th November 2019 there is total silence about any digital signature being put by the issuing authority. Conveniently, respondent stated that petitioner cannot take stand of not receiving the signed copy because the unsigned order was admittedly received by petitioner electronically. However, if this stand of respondent has to be accepted, then the Rules which prescribe specifically that digital signature has to be put will be rendered redundant. In our view, unless digital signature is put by the issuing authority that order will have no effect in the eyes of law,” the Court said.
The High Court has held that the appeal was within time. Since the order was not signed as required by Rule 26(3) of the CGST Rules, the limitation could not begin from 14 November 2019. When the assessee went to take a physical signature at the time of filing of the appeal, that is on 19 May 2021, the limitation started running only from 19 May 2021.
Petitioner was represented by Adv. Ishaan Patkar instructed by Mr. Lilesh Sawant.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates.
