Facts of the Case

The Petitioner, M/s White Mountain Trading Pvt. Ltd., challenged an order dated 15.01.2024 passed by the Commissioner of Central Tax (Appeals-II), whereby its appeal against the Order-in-Original dated 04.05.2023 was dismissed on the ground of limitation.

As per Section 107(1) of the Central Goods and Services Tax Act, 2017, the prescribed period for filing an appeal is three months from the date of communication of the order. The last date for filing the appeal was 03.08.2023.

The Respondent authority recorded that the appeal was filed on 25.09.2023, resulting in a delay exceeding one month beyond the condonable period under Section 107(4) of the Act, and therefore dismissed the appeal as time-barred.

However, the Petitioner contended that the appeal had already been filed online on 02.09.2023, and the later date reflected only the physical submission of documents.

Issues Involved

  1. Whether the date of online filing of an appeal is to be considered as the actual date of filing under GST law.
  2. Whether the delay in filing the appeal exceeded the condonable period under Section 107(4) of the CGST Act, 2017.
  3. Whether the Commissioner (Appeals) erred in refusing to condone the delay without considering the online filing date.

Petitioner’s Arguments

  • The Petitioner argued that the appeal was duly filed through the online portal on 02.09.2023, which falls within the condonable delay period of one month.
  • The date of 25.09.2023 was merely the date of submission of physical documents, which is a procedural requirement following online filing.
  • It was submitted that as per the statutory procedure, filing is complete upon online submission, and therefore the delay did not exceed the permissible condonable limit. 

Respondent’s Arguments

  • The Respondent contended that the appeal was filed on 25.09.2023, which is beyond the condonable period of one month after expiry of the initial limitation period.
  • It was argued that under Section 107(4) of the CGST Act, delay beyond one month cannot be condoned, and therefore the Commissioner (Appeals) lacked jurisdiction to entertain the appeal. 

Court’s Findings / Order

  • The Hon’ble Delhi High Court observed that:
    • The appeal was initially filed online on 02.09.2023.
    • Filing of appeal under GST is primarily through an online process, followed by submission of physical copies.
    • The relevant date of filing is the date of online submission, provided other procedural requirements are fulfilled.
  • The Court held that:
    • The delay in filing the appeal did not exceed one month.
    • The Commissioner (Appeals) was empowered under Section 107(4) to consider the application for condonation of delay.
  • Accordingly:
    • The impugned order was set aside.
    • The matter was remitted back to the Commissioner (Appeals) to consider the application for condonation of delay in accordance with law.

Important Clarification by Court

  • The Court clarified that:
    • It has not expressed any opinion on the merits of the case.
    • The Commissioner (Appeals) shall decide the matter independently.
    • The proceedings should be disposed of expeditiously. 

Sections Involved

  • Section 107(1), Central Goods and Services Tax Act, 2017 – Appeal to Appellate Authority
  • Section 107(4), Central Goods and Services Tax Act, 2017 – Power to condone delay (up to one month)

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/SAS23022024CW27522024_160012.pdf

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