GST Appeal Cannot be Rejected for Non-Filing of Hard Copy: J&K & Ladakh HC says ‘Authorities could have Granted Time’ [Read Order]

The High Court of Jammu & Kashmir and Ladakh has held that the GST ( Goods and Services Tax ) appeal cannot be rejected just for non-filing of the hard copy. The court said that instead of rejecting appeal on these technical grounds, authorities could have granted time.

‘The undisputed facts are that the appeal was filed online within statutory period along with the copy of order and therefore, there was no requirement of filing the hard copy of the same. Therefore, its rejection on the ground of not filing of the hard copy, is without any merit’ observed the court.

TC Tours limited, a company involved in providing tour related services by planning and organization of tours, arranging, transportation, accommodation facilities, meals and guide services and also assist in marketing the tourist destinations and tourism products filed the writ petition before the high court.

The petitioner alleged that the appeal was rejected merely because of non-filing of hard copy. The company also raised the issue of non-upload of certified orders in the GST portal during the appeal filing.

The GST department issued Show Cause Notices ( SCN ) under Section 73 of the GST Act alleging excess availment of Input Tax Credit (ITC) due to mismatch between GSTR-3B and GSTR-2A for FY 2019-20.

A demand of over ₹17 lakh along with interest and penalty was confirmed by an order dated 02.06.2021. Aggrieved by this order, the petitioner filed an online appeal on 27.08.2021, along with the mandatory pre-deposit and documents. The GST portal also generated a provisional acknowledgement.

However, the appellate authority rejected the appeal by issuing Form GST APL-02 on the ground that the petitioner had not submitted the hard copy of the appeal and certified copy of the impugned order.

As per the petitioner’s counsel, Adv. Amrinder Singh and Adv. Sheikh Umar Farooq, neither Section 107 of the J&K GST Act nor Rule 108 of the J&K GST Rules mandates filing of a hard copy when the appeal is filed electronically.

It was further asserted that after amendment to Rule 108, submission of a certified copy of the order is not required where the order is already uploaded on the GST portal.

It was argued that the denial of a real legal remedy on hyper-technical grounds and the rejection of the appeal without providing a hearing opportunity violated the principles of natural justice.

However, the State’s counsels, Mr. Mohsin Qadiri, Sr. AAG with Ms. Maha Majeed, Assisting Counsel countered submission of hard copy and certified copy of the impugned order was mandatory. It said that the appellate authority had rightly dismissed the appeal for non-compliance.

Therefore, Justice Sindhu Sharma and Justice Shahzad Azeem held that “rejection of the appeal merely on the ground that hard copy of the appeal has not been filed is unsustainable. The respondents rather than rejecting the appeal on this technical ground could have granted time to the petitioner to file the same within some stipulated time, if required.”

With regards to the issue of filing certified copy, the high court observed that the requirement of submitting the certified copy of the order in the case of the appeal filed through GST portal was removed through amendment in Rule 108 issued vide S.O 104.

The bench added that in the instant case, the order was uploaded on the GST portal. Also, the petitioner appealed against the same only. Therefore the requirement of filing certified copy if not necessary.

Accordingly, the high court set aside the impugned order and directed the authorities to decide the matter freshly following the mandates under the GST Act.

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