In a significant judgment, the Allahabad High Court has clarified that the filing of a certified copy of the appealed order in a GST appeal is procedural in nature and not a mandatory requirement. The Court ruled that an appeal cannot be dismissed solely on the ground of not submitting a certified copy.
Background of the Case
The case involved Pawan Hans Helicopters Ltd., a public limited company, which had claimed Input Tax Credit (ITC) for the period July 2017 to March 2018 under the transitional provisions of the Goods and Services Tax (GST) regime. The ITC claim was duly reported in the company’s GSTR-3B, GSTR-1 returns, and reflected in its books of account.
Later, the company received a notice under Section 61 of the CGST Act on 03.07.2021, pointing out discrepancies in the returns. This was followed by a Show Cause Notice (SCN) under Section 73(1) on 18.06.2022, concerning mismatches between GSTR-3B, GSTR-1, and GSTR-2A.
Despite filing a reply on 19.07.2022, an adverse order was passed on 16.08.2022. The company filed an appeal electronically on 15.11.2022, but it was dismissed on 30.08.2024 due to non-submission of a certified copy of the impugned order, as required under Rule 108 of the CGST Rules.
Key Arguments and Court’s Observation
The petitioner argued that the requirement under Rule 108 had been amended on 26.12.2022, making the submission of a certified copy procedural and not mandatory. They further contended that this amendment should be applied retrospectively, especially since the appeal was already pending.
The state authorities, however, claimed that the petitioner failed to comply with the pre-amendment requirement, which stipulated submission of a certified copy within the prescribed timeframe.
Justice Piyush Agrawal, after reviewing the facts, observed that the appeal was filed on 15.11.2022, and a copy of the order was submitted with the appeal. The state did not dispute this fact in its counter-affidavit. Given that the amendment to Rule 108 came into effect during the pendency of the appeal, the Court referred to the Delhi High Court’s ruling in Chegg India Private Limited vs. Union of India & Others.
Relying on that precedent, the Allahabad High Court held that filing of a certified copy is procedural, not mandatory. When an appeal is submitted along with all necessary documents and a copy of the impugned order, the absence of a certified copy should not be grounds for dismissal.
Conclusion
This ruling reinforces the principle that procedural lapses should not override the right to appeal under the GST law. It sets a precedent that promotes substantive justice over technical non-compliance, offering relief to taxpayers facing similar procedural challenges.
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