Yash Kothari Public Charitable Trust Vs State Of U.P. (Allahabad High Court)
The Hon’ble Allahabad Court in M/s. Yash Kothari Public Charitable Trust v. the State of U.P and Ors. [Writ Tax No. 1027 of 2022 dated January 16, 2023] has held that taxing authorities cannot stop any assessee from claiming its statutory right of appeal, in the garb of technicality and cannot deny to entertain the appeal filed offline on technical grounds, due to the mistake of the department or the technical glitch in software when an appeal of assessee is not reflected on the portal. Further, directed the Revenue Department to consider the offline appeal of the Petitioner.
Facts:
M/s. Yash Kothari Public Charitable Trust (“the Petitioner”) is a registered public charitable trust, constructing a hospital. The Petitioner had claimed certain exemptions, which was rejected by the Revenue Department (“the Respondent”) vide order dated January 12, 2022 (“the Impugned Order”). Further, the Petitioner had reversed certain Input Tax Credit (“ITC”) through FORM GSTR-3B dated February 08, 2022. The Respondent passed a summary order dated January 12, 2022. The Petitioner, however, filed for an appeal but the same was not reflected on the Goods and Services Tax (“GST”) Portal and the Portal displayed error. The Petitioner, thereafter lodged a complaint before the Respondent about the issue. Subsequently, a rectification order by the Respondent was issued dated April 19, 2022, and recovery proceedings were initiated dated April 21, 2022.
Being aggrieved, this petition has been filed.
The Petitioner contended that the GST portal was not accepting the appeal filed against the Impugned Order and the Respondent was not accepting the offline appeal and has further issued a correspondence dated June 30, 2022 (“the Impugned Correspondence”) requiring the Petitioner to furnish acknowledgment of online filing of appeal. Further that, Section 107 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”) provided that the appeal must filed electronically or otherwise as may be notified by the Respondent however, the Respondent had not notified any other method for filing the appeal.
The Respondent contended that, the appeal against Impugned Order was maintainable but the Petitioner had failed to place the acknowledgement slip due to which, the appeal was unheard and undecided.
Issue:
Whether the appeal rejected by the Respondent on technical grounds is sustainable?
Held:
The Hon’ble Allahabad High Court in Writ Tax No. 1027 of 2022 held as under:
