Software/technical error ground can be considered by appellate authority bombay high court

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD

1039 WRIT PETITION NO.11908 OF 2022

M/S MEERA MEDICAL AND GENERAL STORES THROUGH ITS
PROPRIETOR MININATH SANJAY KAWADE

VERSUS

THE COMMISSIONER OF STATE TAX AND ANOTHER
…
Advocate for Petitioners : Mr. Patodi And Associates
AGP for Respondents/State: Mr. S. B. Pulkundwar
…
CORAM : NITIN W. SAMBRE &
G. CHAPALGAONKAR, JJ.

DATE : 16.03.2023

PER COURT :

The learned Additional Government Pleader would invite attention of this Court to the provisions of Section 107 of the Central Goods and Services Tax Act, 2017 [hereinafter referred to as ‘the Act’ for short] so as to claim that the petitioner has a remedy of an appeal before the Appellate Authority. Sub-Section 1 of Section 107 of the Act, reads thus:

“107. Appeals to Appellate Authority – (1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.”

In view of above, we are of the view that the claim put-forth by the petitioner that the discrepancy in the excess ITC claimed is because of technical/software error can be a ground to be looked into by the Appellate Authority and there is no specific embargo under the powers of the Appellate Authority not to look into such grounds.

In view of above, we refrain our-self from causing interference in the writ jurisdiction. The writ petition accordingly disposed of.

The disposal of the petition shall not come in the way of the petitioner to prefer an appeal as referred herein above before the Appellate Authority.

(S. G. CHAPALGAONKAR, J.) (NITIN W. SAMBRE, J.)

Thanks for sharing the excerpt from the Bombay High Court ruling on software/technical errors as a ground in GST appeals. Here’s a summary and practical insight based on this:

Key Takeaways from Bombay High Court Judgment (Writ Petition No. 11908 of 2022):

Section 107(1) of CGST Act, 2017 provides a right to appeal before the Appellate Authority against decisions/orders passed by the adjudicating authority.
The Court acknowledged that a claim of discrepancy due to technical/software error (e.g., excess ITC claimed) is a valid ground for appeal.
There is no specific prohibition on the Appellate Authority from considering such grounds related to software or technical errors.
The High Court refrained from interfering in writ jurisdiction because the remedy is through the appeal mechanism under Section 107.
The petitioner is free to file an appeal and argue their case on the basis of the software/technical error.

Practical Implications:

If you or your client faces a GST order where the tax authority alleges issues such as excess ITC or other discrepancies arising from technical glitches or software errors, you can raise this as a ground in the appeal.
You should file an appeal before the prescribed Appellate Authority within 3 months from the date of order communication, as per Section 107(1).
The appellate authority is empowered to examine and adjudicate on the merits of technical/software errors in GST claims or disputes.
This judgment reinforces that technical glitches are legitimate grounds for appeal and should be properly documented and argued.
It’s advisable to maintain a clear record of any system/software issues, communications with IT/software vendors, or GST portal errors to substantiate your claim.