Facts of the Case:
The petitioner was issued an order under Section 74 of the CGST/UPGST Act for alleged tax discrepancies.
To avoid coercive action, the petitioner deposited the disputed tax amount but continued to contest the liability.
Due to the deposit, the adjudicating authority assumed no dispute remained and passed an order treating the tax demand as settled.
When the petitioner tried to file an appeal under Section 107, the GST portal auto-populated the disputed tax as "Nil", because the impugned order showed no outstanding demand.
This technical setting prevented e-filing of the statutory appeal.
GSTN stated that unless the jurisdictional officer creates or rectifies a demand, the portal cannot allow the appeal to be filed.
The petitioner approached the High Court, arguing that a portal defect cannot take away the statutory right to appeal.
Petitioner's Contention:
Right to appeal is a statutory right and cannot be blocked due to technical glitches on the GST portal.
They had only deposited the amount to avoid coercive recovery, but they never accepted the tax liability
The portal incorrectly showing "Nil disputed tax" is a system error, not a reflection of their legal position
GSTN's stand that demand must be created again by the officer is contrary to law and makes the appeal process dependent on administrative action.
The petitioner requested either the portal be enabled to accept the appeal, or they be permitted to physically file the appeal.
Held:
The Court held that right to appeal under Section 107 is a statutory right and cannot be defeated by technical or procedural constraints of the GST portal.
Procedure is the handmaid of justice, not its master - portal limitations cannot curtail a legal remedy.
GSTN is obligated to ensure that appeals are allowed even when the portal auto-populates "Nil" disputed tax.
The Court directed GSTN to modify its software within one month to permit such appeals.
For the present petitioner, the Court allowed:
Physical filing of the appeal,
Appeal to be registered,
To be decided on merits,
No limitation objection shall be raised since the delay was caused by the portal.
The judgment was in favour of the assessee.
GST Case Law Agarwal Aromas Private Limited Versus Union of India
Citation-2025 TAXONATION 2845 (ALLAHABAD)(Click here to read full case law)
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