GST payer alleges Order dated March 2022 uploaded on August 2022: Calcutta HC orders Appellate Authority to Re-examine Date [Read Order]
The High Court remanded the GST appeal, holding that limitation must be verified based on the actual portal upload date, directed to reconsider the order inadvertently and be rectified later.
In the recent case, the Calcutta High Court quashed the Goods and Services Tax (GST) appellate authority’s order, holding that the authority failed to verify the actual date of uploading the order on the GST portal. The Court stated that the appeal time should start only after proper communication of the order.
The Petitioner, Megacity Cement Pvt. Ltd. & Anr., filed writ petition challenging two orders, firstly, an appellate order dated May 23, 2023 under Section 107 of the WBGST Act, 2017/CGST Act, 2017, which dismissed the petitioner's appeal on grounds of limitation, secondly, an order dated January 31, 2025 passed under Section 74 of the said Act of 2017.
The section 107 of the West Bengal Goods and Service Tax (WBGST) 2017 explained that: Appeals to Appellate Authority
“Any person aggrieved by any decision or order passed under this Act or the Central Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.”
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Whereas section 74 of the same Act 2017 explained that: Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or any willful misstatement or suppression of facts.
“Where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilized by reason of fraud, or any willful misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilized input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice.”
The Petitioner’s approached the court stating that the original order dated March 10, 2022, was only uploaded on the GST portal on August 25, 2022, and their appeal filed on August 28, 2022, was within the prescribed time limit.
Further, the appellate authority had rejected their appeal, disbelieving their claim about the upload date based on a general observation that communications on the GST portal are reflected "in no time" and without conducting any specific inquiry.
“Once any communication in the form of notice, order etc. is issued through GST portal; the same is reflected at the RTP’s end in no time. Hence there arises hardly any communication late than the real time”.
Concerning the second order dated January 31, 2025, the Counsel for the Respondents, informed the Court that it was inadvertently issued and a rectification order dated November 14, 2025, nullifying the demand, had since been issued. The Court took this rectification order on record.
The High Court composed of Justice Om Narayan Rai, heard and reviewed the matter filed by the Petitioner challenging the two orders.
The High Court, after considering the appellate tribunal's non-functionality and accepting the petitioners' explanation for the delay in approaching the court, dismissed the appeal based on general observation without verifying the actual upload date of the order. The Court said that the burden to prove the upload date, when it occurs on a portal, lies with the authority.
Consequently, the High Court set aside the appellate order dated May 23, 2023, and remanded the matter back to the appellate authority for fresh consideration. The appellate authority was directed to specifically ascertain whether the order was uploaded on August 25, 2022, and to consider the petitioners' submission regarding the non-supply of the detailed order. If the order was uploaded prior to August 25, 2022, the appellate authority was permitted to decide on condonation of delay in accordance with law.
Thus, the Petition was disposed of based on these observations.
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