Appeal Cannot Be Rejected Due to Technical Defect: Madras High Court Ruling
By: Admin
Date: September 24, 2024
Categories: Important Pronouncements
Reading Time: 4 Minutes
The Madras High Court in Indian Potash Ltd. v. Deputy Commissioner (ST) GST Appeal, Chennai [Writ Petition No. 12101, 12103, and 12105 of 2024, dated June 03, 2024], ruled that non-production of a hard copy of the order is merely a technical defect, and the appeal should still be processed, provided it was filed within the stipulated time.
Facts of the Case
In this case, M/s Indian Potash Ltd. and others (the “Petitioners”) sought a refund of IGST on ocean freight. However, the Deputy Commissioner (ST) GST issued refund rejection orders on March 19, 2021 (the “Impugned Orders”).
The Deputy Commissioner filed three appeals on June 18, 2021, before the Appellate Authority to claim the refund of IGST on ocean freight but failed to submit the hard copy of the Impugned Order within 7 days of filing the appeal, as required by Rule 108(3) of the CGST Rules, 2017. The requirement was only met by February 02, 2024. The Petitioners then filed a writ petition challenging the rejection.
Key Issue
Can the Revenue Department reject the refund application due to a procedural lapse?
Court’s Ruling
The Hon’ble Madras High Court ruled as follows:
- Relying on its previous ruling in PKV Agencies v. Appellate Deputy Commissioner (GST) (Appeals) [73 GSTL 71 (Mad.)], which in turn referenced Atlas PVC Pipes v. State of Odisha [65 GSTL 45 (Ori.)], the court held that failure to submit the hard copy of the order is a technical defect. As long as the appeal was filed within the time limit, the technical lapse should not lead to its rejection.
- In the present case, the Impugned Orders were issued on March 19, 2021, and the appeals were filed on June 18, 2021, within the prescribed time. Thus, the court applied the reasoning from PKV Agencies.
- The court directed the Respondent to process the appeals without rejecting them based on the delayed submission of the hard copy and instructed them to number the appeals within one month from the receipt of the order.
Our Comments
Rule 108 of the CGST Rules governs appeals to the Appellate Authority. Rule 108(3), as amended by Notification No. 26/2022-Central Tax dated December 26, 2022, requires that if the decision or order is not uploaded on the common portal, the appellant must submit a self-certified copy of the order within 7 days of filing the appeal.
If the appellant fails to do so within 7 days, the date of submission of the self-certified copy is considered the date of filing the appeal. This ruling reinforces that procedural lapses, such as late submission of the order copy, should not obstruct the processing of appeals.
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