Case Note & Summary
The petitioner, M/s. Meritas Hotels Pvt. Ltd., challenged the action of respondent no.5 (Joint Commissioner of Sales Tax (Appeals-IV)) in refusing to accept and entertain an appeal against a summary assessment order dated April 20, 2019 passed under Section 62 of the Maharashtra Goods and Services Tax Act, 2017 (MGST Act). The assessment order was passed due to non-filing of GST returns for February 2019, allegedly on account of financial crunches and technical glitches in the GSTN portal that prevented filing. The petitioner attempted to file the appeal manually on November 20, 2019 and electronically on January 10, 2020, but the appellate authority refused to accept it. The petitioner contended that the physical copy of the assessment order was not served and the scanned copy was only sent by email on a later date. The court considered whether the appellate authority was justified in refusing the appeal. The court held that the remedy of appeal under Section 107 of the MGST Act is available against an order under Section 62, and the appellate authority should have entertained the appeal. The court directed respondent no.5 to accept the appeal and decide it on merits, condoning the delay, as the petitioner had made bona fide attempts to file the appeal. The writ petition was disposed of accordingly.
Headnote
A) Goods and Services Tax - Summary Assessment - Section 62 of MGST Act, 2017 - Appeal - The petitioner challenged the refusal of the appellate authority to entertain an appeal against a summary assessment order under Section 62 of the MGST Act, 2017. The court held that the appeal remedy under Section 107 is available against an order under Section 62, and the appellate authority should have considered the appeal on merits, condoning the delay caused by technical glitches and non-service of the order. (Paras 1-10)
B) Goods and Services Tax - Condonation of Delay - Section 107 of MGST Act, 2017 - The court observed that the petitioner had made bona fide attempts to file the appeal manually and electronically, but the appellate authority refused to accept it. The court directed the appellate authority to entertain the appeal and decide it on merits, considering the delay as condoned. (Paras 5-10)
Issue of Consideration
Whether the appellate authority was justified in refusing to entertain the appeal against the summary assessment order under Section 62 of the MGST Act, 2017 on the ground of delay, when the petitioner faced technical glitches and non-service of the order.
Final Decision
The court allowed the writ petition and directed respondent no.5 to accept the appeal filed by the petitioner and decide it on merits in accordance with law, condoning the delay. The petition was disposed of.
Law Points
- Summary assessment under Section 62 of MGST Act
- 2017
- Appeal remedy under Section 107 of MGST Act
- Condonation of delay
- Technical glitches in GSTN portal
- Service of assessment order
Case Details
2021 LawText (BOM) (12) 38
WRIT PETITION NO.7793 OF 2021
DIPANKAR DATTA, CJ, M. S. KARNIK, J.
Mr. Rahul Thakar i/b. Mr. C. B. Thakar for petitioner, Smt. Nisha Mehra, AGP for respondent Nos.1, 3 to 5-State
M/s. Meritas Hotels Pvt. Ltd.
The State of Maharashtra, The Union of India, The Commissioner of State Tax, The Deputy Commissioner of Sales Tax, The Joint Commissioner of Sales Tax (Appeals -IV)
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Nature of Litigation
Writ petition under Article 226 of the Constitution of India challenging refusal to accept appeal against summary assessment order under Section 62 of MGST Act, 2017.
Remedy Sought
Petitioner sought direction to respondent no.5 to accept and entertain the appeal against the assessment order dated April 20, 2019.
Filing Reason
Petitioner could not file GST returns for February 2019 due to financial crunches and technical glitches in GSTN portal, leading to summary assessment order under Section 62. The appellate authority refused to accept the appeal filed manually and electronically.
Previous Decisions
Assessment order dated April 20, 2019 passed under Section 62 of MGST Act, 2017 by respondent no.4. Appeal filed manually on November 20, 2019 and electronically on January 10, 2020, but not entertained by respondent no.5.
Issues
Whether the appellate authority was justified in refusing to entertain the appeal against the summary assessment order under Section 62 of the MGST Act, 2017 on the ground of delay.
Whether the petitioner had made bona fide attempts to file the appeal and whether the delay should be condoned.
Submissions/Arguments
Petitioner argued that the physical copy of the assessment order was not served and the scanned copy was sent by email later, and that technical glitches prevented filing of returns and appeal.
Respondents argued that the appeal was time-barred and the appellate authority was justified in refusing to entertain it.
Ratio Decidendi
The remedy of appeal under Section 107 of the MGST Act, 2017 is available against an order under Section 62. The appellate authority should not have refused to entertain the appeal on the ground of delay when the petitioner faced technical glitches and non-service of the order, and had made bona fide attempts to file the appeal. The delay should be condoned and the appeal decided on merits.
Judgment Excerpts
Invoking the jurisdiction of this Court under Article 226 of the Constitution of India, the petitioner challenges the action on the part of the respondent no.5 in refusing to accept and entertain the appeal preferred by the petitioner against the impugned assessment order dated April 20, 2019 passed under Section 62 of the Maharashtra Goods and Services Tax Act, 2017.
The physical true copy of the assessment order dated April 20, 2019 was not served on the petitioner nor was the same uploaded on the GSTN portal.
Procedural History
Assessment order under Section 62 of MGST Act, 2017 passed on April 20, 2019. Petitioner attempted to file appeal manually on November 20, 2019 and electronically on January 10, 2020, but appellate authority refused to entertain. Petitioner then filed writ petition under Article 226 before the Bombay High Court.
Acts & Sections
- Maharashtra Goods and Services Tax Act, 2017: Section 62, Section 107
- Constitution of India: Article 226
