Calcutta High Court Directs Department to Accept Appeal for Part Period Affected by GST Portal Technical
Issue By: Admin | Date: November 12, 2024 | Category: Important Pronouncements
Key Highlights:
The Calcutta High Court ruled in favor of M/s. East India Shipping Agency. It directed the GST Department to accept an appeal for periods affected by technical issues on the GST portal. This decision ensures that taxpayers aren’t penalized due to portal problems.
Case Overview:
Facts:
M/s. East India Shipping Agency received a Show Cause Notice (SCN) on September 21, 2023, under Section 74 of the CGST Act. Authorities passed an order on December 18, 2023, covering the period from April 2018 to March 2023. However, the Petitioner only sought to appeal for the tax periods 2020-21 to 2022-23. Due to GST portal issues, the Petitioner could not file the appeal for these periods.
Issue:
The issue at hand was whether the GST Department could restrict the filing of an appeal for affected periods due to technical glitches on the portal.
Court’s Ruling:
The Calcutta High Court ruled in favor of the Petitioner. Key points include:
- Intent to Appeal for Specific Periods:The Petitioner expressed intent to appeal only for the periods 2020-21 to 2022-23.
- Payment of Admitted Amount:The Court required the Petitioner to pay the admitted tax, interest, fines, fees, and penalties for the periods not in dispute.
- Conditional Appeal Filing:The Court instructed the Petitioner to pay 10% of the disputed amount under Section 107(6) of the CGST Act. After making the payment, the Respondent must admit the appeal and hear it on its merits.
- Timeline for Filing and Disposing of the Appeal:The Petitioner must file the appeal within three weeks. The Appellate Authority must dispose of the appeal within eight weeks.
Legal Insights:
- Section 107(6) of the CGST Act: This section mandates that a taxpayer must deposit 10% of the disputed amount to file an appeal.
- Technical Glitches: The ruling emphasized that technical issues on the GST portal should not hinder a taxpayer’s right to appeal.
- Right to Appeal: The decision underscores the importance of upholding the taxpayer’s right to appeal, even when technical failures prevent timely filing.
Related Legal Context:
This ruling aligns with past decisions that protect taxpayers from procedural obstacles caused by technical issues. Courts have consistently held that technical glitches should not hinder a taxpayer’s rights.
Our Take:
This decision serves as a timely reminder that taxpayers’ rights must be protected, even in the face of technical barriers like GST portal issues. By providing a clear pathway for filing appeals, the Court ensures taxpayers receive fair treatment.
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