Online Filing Date Considered for GST Appeal Limitation: Madras HC Judgment
Case Title:
Kasturi & Sons (P.) Ltd. v. Additional Commissioner of GST & Central Excise (Appeals-1), Chennai
Judgment Date: July 10, 2024
W.P. No.: 18642 of 2024
The Madras High Court has clarified that the date of online filing under the CGST Act determines the limitation period for appeals. This decision provides much-needed clarity on compliance with Rule 108(3) of the CGST Rules, 2017.
Facts of the Case
Refund Rejection
Kasturi & Sons (P.) Ltd. submitted a refund application under Section 54 of the CGST Act. However, authorities rejected it through an order issued on August 30, 2024.
Appeal Filing
The petitioner filed the appeal online on October 31, 2022. They later submitted the hard copy on August 2, 2023, significantly exceeding the prescribed deadline. Consequently, the appellate authority rejected the appeal on March 13, 2024, citing the delayed hard copy submission.
Revenue’s Argument
The Revenue contended that only the provisional acknowledgment date could qualify as the filing date when the order had been uploaded on the GST portal.
Key Issue
Does the online filing date count as the filing date for calculating the limitation period?
Court’s Decision
Rule 108(3): Clarification
Rule 108(3) of the CGST Rules, 2017, specifies that:
- When an order is uploaded on the GST portal, the online filing date is considered for the limitation period.
- If the order is not uploaded, the appellant must submit a self-certified copy of the order within seven days of filing the appeal online.
Hard Copy Submission as a Procedural Requirement
The court ruled that submitting the hard copy is a procedural step. A delay in this action does not invalidate an appeal if the online filing occurs within the limitation period.
Reversal of Rejection
The court directed the appellate authority to hear the appeal on its merits, overturning the initial rejection.
Key Observations
Priority on Online Filing Date
The court emphasized that the online filing date should be the primary factor in calculating the limitation period when the appeal order is uploaded on the portal.
Justice Over Technicalities
The court prioritized substantive justice over procedural lapses. It noted that minor delays in procedural requirements should not obstruct justice.
Relevant Provisions: Rule 108(3)
- When the Order Is Uploaded:
The date on the GST APL-01 acknowledgment serves as the appeal filing date. - When the Order Is Not Uploaded:
The appellant must submit a self-certified copy within seven days of filing the appeal online. If they fail to do so, the filing date will shift to the submission date of the self-certified copy.
Implications of the Judgment
Clearer Guidelines for Taxpayers
Taxpayers now know that the online filing date determines the limitation period, provided the order is uploaded on the portal.
Procedural Flexibility
The judgment ensures that appeals are not dismissed due to minor delays in submitting hard copies when online compliance is met.
A Fairer Appeal Process
The decision reinforces fairness in adjudication by focusing on the merits of appeals rather than technical flaws.
Conclusion
The Madras High Court’s ruling reinforces the importance of substantive justice in GST appeals. By affirming the significance of the online filing date, the judgment simplifies compliance and provides relief to taxpayers navigating Rule 108(3) of the CGST Rules, 2017.
