Limitation – Online Filing of Appeal – Deficiencies of physical copies etc; complied with after limitation – Rejection of appeal on the ground of limitation is illegal – Section 107(1) and (4) of the Act

The Petitioner is the script writer.. He was given Registration on 19.7.2018.   It was cancelled by the order dated 1.1.2019. Fresh Registration was given on 26.3.2022.

However, the petitioner had inadvertently filed GST Returns under old & new GST registrations and also deposited Tax under both the returns.  

In view of the bona fide error, the application for refund of Rs.1,22,220/- was was made.   It was rejected by the order dated 8.6.2022.  On 8.8.2022, the petitioner filed appeal Online.  The appellate did not treat within limitation since physical copies were not furnished and there were deficiencies on documents.  On this ground alone, the appeal was rejected on 28.12.2022.

HELD that the approach of both the Authorities in dealing with the petitioner’s refund application was not correct both in facts as also in law.  The tax deposited under the incorrect return could not be retained by the respondents as it was not deposit as per law or collection of tax under authority of law.  The appeal was rejected only on the ground of limitation.  Although the appeal was filed Online on 18.8.2022 within the prescribed period of limitation of four months, the appellate authority did not treat the appeal within limitation since the physical copies were not furnished and/or there were deficiencies on documents to be complied.   The appellate authority has taken hyper technical view of the matter and rejected the petitioner’s appeal without considering the merits of the case.  Such approach is contrary to the record, illegal and also inconsistent with SEction107(1) and (4) of the CGST Act.

Any deficiency in filing appeal / application like failure physical documents, cannot make appeal, registered on online portal within the prescribed period of limitation.   Once the appeal was filed within the prescribed limitation, any deficiency in the appeal certainly could be removed later on.  The parties have an opportunity to remove deficiencies, which prevail at the time of filing appeal, after filing of the proceedings.

Judgment dated 20.2.2024 in W.P.No.1632 of 2024 of Yogesh Rajendra Mehra Vs. Principal Commissioner CGST and others