The Hon’ble Delhi High Court in present case dealt with the question that whether physical filing done post limitation period would bar the appeal on such grounds of the actual online filing was conducted within the limitation period.
The petitioner challenged the order by the Commissioner of Central Tax Appeals, dismissing the appeal against the original order on the grounds of being time-barred. The deadline for filing an appeal therefore under Section 107(1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as “the Act”), was 03.08.2023. The appeal was recorded as filed on 25.09.2023, which was more than a month late. Commissioner Appeals held that only a delay of up to one month could be condoned by the power vested under him according to Section 107(4) of the Act if sufficient cause was shown. It was noted that the petitioner had initially filed the appeal online on the GST Portal on 02.09.2023, and the date recorded in the impugned order, is when the petitioner physically submitted the appeal following the online submission. It is undisputed that the appeal must be filed online first, followed by the submission of a physical copy to the department and the date of filing is considered the date of initial online submission, provided the appellant complies with other legal requirements.
Since the appeal was filed online 02.09.2023, the delay did not exceed one month, the Hon’ble Delhi High Court held that Commissioner Appeals had the authority to consider the application for condonation of delay. Consequently, the order was set aside, and the matter was remitted back to the Commissioner Appeals to be considered on merits.
W&B Comments: The Hon’ble High Court clarified that taxpayers must adhere strictly to prescribed time limit of 3 months while filing a statutory appeal under Section 107(1). However, it was also affirmed that the date of online filing of appeal on the GST Portal constitutes the official date of appeal initiation and not the date of physical submission. This interpretation of the section safeguards the taxpayers right to seek condonation of delay for reasons deemed sufficient under Section 107(4) of the Act.