2023 Taxo.online 687

GST Appeals Hurdle: Bombay High Court Orders Manual Filing as E-Portal Falls Short

Introduction:

The Bombay High Court, in a significant ruling, has directed the manual filing of appeals related to Goods and Services Tax (GST) after the electronic portal failed to provide a provision for such filings. This decision comes in response to a plea by Savita Oil Technologies Ltd. and others against the refusal by the authorities to accept their appeals concerning GST intimations issued in Form GST DRC-05.

What Happened:

Savita Oil Technologies Ltd. and several other petitioners sought to file appeals challenging intimations received in Form GST DRC-05, issued by the adjudicating authority in May 2022. These intimations demanded the payment of disputed taxes, which the petitioners had already deposited under protest. When attempting to file electronic appeals, the petitioners discovered that the GST portal lacked a mechanism for such filings. Consequently, they approached respondent no.7, requesting permission to file manual appeals. However, their request was denied, as the authorities insisted that appeals must be submitted through the electronic portal.

Why It Happened:

The issue at hand arose due to a technical limitation within the GST electronic portal. The petitioners argued that the intimations received were appealable orders under Section 107 of the Central Goods and Services Tax Act, 2017 (CGST Act). They contended that the portal's lack of provisions for electronically filing such appeals effectively rendered their statutory right to appeal meaningless. The authorities' refusal to permit manual filing of appeals led to this legal challenge.

Analysis & Impact:

The Bombay High Court's decision underscores the importance of ensuring that electronic systems and portals are capable of accommodating legal requirements. In this case, the inability of the GST portal to handle appeals against certain orders posed a significant challenge for taxpayers seeking to exercise their legal rights. The court's ruling, allowing manual filing of appeals until an electronic solution is in place, provides a practical interim measure.

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