Case Law Details
Kasturi & Sons Pvt. Ltd. Vs Additional Commissioner of GST & Central Excise (Appeals-1) (Madras High Court)
Summary: The Madras High Court, in Kasturi & Sons Pvt. Ltd. vs Additional Commissioner of GST & Central Excise (Appeals-1) [W.P. No. 18642 of 2024], clarified that the date of online filing of a GST appeal is to be treated as the date of filing for limitation purposes. The petitioner, Kasturi & Sons Pvt. Ltd., filed an appeal online within the prescribed period after their refund application under Section 54 of the CGST Act was rejected. However, due to the delayed submission of the hard copy, the appeal was dismissed. The petitioner contested the rejection, citing compliance with Rule 108(3) of the CGST Rules, which specifies that online submission suffices when the order appealed against is uploaded on the GST portal. The court emphasized that Rule 108(3) explicitly considers the provisional acknowledgment date as the filing date if the order is available on the common portal. It further noted that requiring a hard copy is merely procedural. Consequently, the court set aside the appellate authority’s order rejecting the appeal and directed them to consider the appeal on its merits. This judgment reinforces that online filing under GST laws is valid for determining compliance with time limits, provided the necessary conditions under Rule 108(3) are met. It underscores the importance of distinguishing between substantive and procedural requirements in GST appeal processes.
The Hon’ble Madras High Court in the case of Kasturi & Sons (P.) Ltd. v. Additional Commissioner of GST & Central Excise (Appeals-1), Chennai [W.P. No. 18642 of 2024 dated July 10, 2024] wherein the Hon’ble High Court taking into consideration Rule 108(3) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) held that the date of online filing of appeal be considered as the date of filing GST appeal for the purpose of limitation.
Facts:
Kasturi & Sons (P.) Ltd. (“the Petitioner”) filed a refund application under Section 54 of the CGST Act, However, the application was rejected vide order dated August 30, 2024 (“the Order”). Thereafter, appeal was filed against the order online on October 31, 2022 and hard copy of the appeal was submitted on August 02, 2023, which was beyond the prescribed time period, based on which the appeal filed was rejected vide order dated March 13, 2024. The Revenue Department (“the Respondent”) contended that date of issuance of provisional acknowledgment would be considered as the date of filing of appeal only when the order appealed against was uploaded on common portal.
Issue:
Whether the date of online filing of appeal be considered as date of filing GST appeal for the purpose of limitation?
Held:
The Hon’ble Madras High Court in the case of W.P. No. 18642 of 2024 held as under:
- Observed that, as per rule 108(3) of the CGST Rules, the self-certified copy of the order has to be submitted along with the appeal, only when the order appealed against is not uploaded on GST portal.
- Noted that, as per rule 108(3) of the CGST Rules, it has been stated that when the order is duly uploaded on the common portal, the date of online filing would be considered as the date of filing of appeal.
- Opined that, when the appeal is filed online, the filing of hard copy of appeal is a procedural requirement.
- Held that, the Impugned Order is liable to be set aside.
- Directed that, the appellate authority shall receive the appeal and decide the same on merits.
Relevant Provisions:
“Rule 108(3) of the CGST Rules
(3) Where the decision or order appealed against is uploaded on the common portal, a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:
Provided that where the decision or order appealed against is not uploaded on the common portal, the appellant shall submit a self-certified copy of the said decision or order within a period of seven days from the date of filing of FORM GST APL-01 and a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf, and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:
Provided further that where the said self-certified copy of the decision or order is not submitted within a period of seven days from the date of filing of FORM GST APL-01, the date of submission of such copy shall be considered as the date of filing of appeal”
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
In this writ petition, an appellate order dated 13.03.2024 is assailed. The petitioner had applied for refund under Section 54 of applicable GST enactments. Such application was rejected by order dated 30.08.2022. The petitioner carried the matter in appeal before the appellate authority by presenting such appeal online on 31.10.2022. The time limit for filing such appeal was up to 28.11.2022. On account of the hard copy of the appeal being submitted on 02.08.2023, the appeal was rejected.
2. Learned counsel for the petitioner referred to the facts set out above and submitted that interference with the impugned order is warranted in as much as the appeals were filed within time.
3. Mr. Rajnish Pathiyil, learned senior standing counsel, accepts notice for the respondent. He submits that the date of issuance of provisional acknowledgment shall be considered as the date of filing of the appeal only if the order appealed against was uploaded on the common portal.
4. The petitioner has placed on record evidence that the appeal was filed in Form GST APL-01 through the online mode on the GST portal on 31.10.2022. Such filing was in accordance with Rule 108(1) of the Central Goods and Services Tax Rules, 2017 (the GST Rules) and within the prescribed period of limitation.
5. Sub-rule(3) of Rule 108 of the Central Goods and Services Tax Rules, 2017 is pertinent for the adjudication of this writ petition. The said sub-rule is extracted below:
“(3) Where the decision or order appealed against is uploaded on the common portal, a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf and the date of issue of the provisional acknowledgement shall be considered as the date of filing of appeal:
Provided that where the decision or order appealed against is not uploaded on the common portal, the appellant shall submit a self-certified copy of the said decision or order within a period of seven days from the date of filing of FORM GST APL-01 and a final acknowledgement, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf, and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:
Provided further that where the said self-certified copy of the decision or order is not submitted within a period of seven days from the date of filing of FORM GST APL-01, the date of submission of such copy shall be considered as the date of filing of appeal.
Explanation. – For the provisions of this rule, the appeal shall be treated as filed only when the final acknowledgment, indicating the appeal number, is issued.”
6. The above sub-rule indicates clearly that the requirement of filing a self-certified copy of the order appealed against becomes applicable, as per the first proviso thereto, only where the order appealed against is not uploaded on the common portal. In the case at hand, the order was duly uploaded on the common portal. In such event, the date of online filing is the date of filing of the appeal. Even otherwise, the filing of a hard copy is a purely procedural requirement. Consequently, the impugned order is not sustainable.
7. Therefore, impugned order dated 13.03.2024 is set aside and the appellate authority is directed to receive and dispose of the appeal on merits.
8. W.P.No.18642 of 2024 is disposed of on the above terms. No costs. Consequently, connected miscellaneous petition is closed.
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