03 Jul Madras High Court: Appeal Cannot Be Rejected for Procedural Lapse in Non-Submission of Order
Introduction
The Hon’ble Madras High Court in Indian Potash Ltd. v. Deputy Commissioner (ST) [W.P. Nos. 12497, 12498, 12500 & 12501 of 2024, dated June 06, 2024] directed the adjudicating authority to entertain an appeal that was earlier rejected due to the non-submission of the order copy by the assessee before the appellate authority.
Facts of the Case
M/s. Indian Potash Ltd. (“the Petitioner”) filed an IGST refund application related to ocean freight, which was rejected by the adjudicating authority. Aggrieved by the order, the Petitioner filed an appeal before the first appellate authority but failed to submit the copy of the adjudicating authority’s order. According to Rule 108(3) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”), the assessee is required to submit the order copy within seven days of presenting the appeal. Due to this procedural lapse, the appellate authority rejected the appeal.
Issue
Whether the Revenue department can reject a refund application based solely on a procedural lapse.
Held
The Hon’ble Madras High Court held:
- Relied on the judgment of the Orissa High Court in M/s. Atlas PVC Pipes Ltd. v. State of Odisha [2022 (65) G. S. T. L. 45 (Ori.)], where it was ruled that non-production of the hard copy of the impugned order is a technical defect. An appeal should be processed provided it is filed within the prescribed time limit.
- Noted that in the present case, the appeal was filed within the time limit prescribed by statute.
- Directed the adjudicating authority to entertain the appeal within one month.
The writ petition was disposed of accordingly.
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