M/S Jagdish Prasad Pal, Through Its Sole Proprietor vs. State Of U.P. And 2 Others

Facts

The petitioner, M/s Jagdish Prasad Pal, through its sole proprietor, challenged an order dated 21.9.2021 passed by the Additional Commissioner, Grade-2 (Appeal), Commercial Tax, Sonebhadra. This appellate order dismissed the petitioner's appeal against an order dated 12.09.2019 passed by the Assistant Commissioner, Commercial Tax Unit-4, Sonebhadra, on the grounds that the appeal was time-barred. The petitioner's registration was cancelled by the order dated 12.9.2019. The petitioner asserted that the cancellation order was first uploaded on the GST Portal on 20.8.2021, and a copy obtained from the portal was annexed as proof. The respondent's counter affidavit claimed the order was properly served at the petitioner's registered email address, but this was denied by the petitioner, who also noted the lack of specific details or proof for the claimed email communication.

Held

The Court held that the appeal filed by the petitioner was within the limitation period. The Court found that the petitioner's assertion that the order dated 12.9.2019 was first uploaded on the GST Portal on 20.8.2021 was not effectively rebutted by the respondent. The respondent's claim of service via email lacked specific details and supporting evidence, leading the Court to infer that the order was first communicated to the petitioner on 20.8.2021. Applying Section 107 of the U.P. Goods and Services Tax Act, 2017, which prescribes a three-month limitation period from the date of communication, the Court concluded that the appeal filed on 20.8.2021 was within time. The appellate authority erred in dismissing the appeal as time-barred. Consequently, the appellate order dated 21.09.2021 was set aside, and the matter was remitted to the appellate authority for decision on merits. The Court directed the appeal to be decided expeditiously, preferably within three months.

Key Issues

1. Whether the appeal filed by the petitioner before the appellate authority was within the prescribed limitation period under Section 107 of the U.P. Goods and Services Tax Act, 2017, considering the date of communication of the order under challenge? The petitioner argued that the order dated 12.9.2019 cancelling its registration was first communicated to it on 20.8.2021, as evidenced by its upload date on the GST Portal. Therefore, the appeal filed on 20.8.2021 was within the three-month limitation period stipulated by Section 107 of the Act. The petitioner relied on the fact that the order was first uploaded on the portal on 20.8.2021 and denied the respondent's assertion of prior email service due to lack of specific details and proof. The respondent (State) argued that the order dated 12.9.2019 was properly served on the petitioner at its registered email address. The respondent did not provide specific details or proof of this email communication in their counter affidavit.