GST UPDATE

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MADRAS HIGH COURT in the case of Indian Potash Limited, Section 107 of the CGST Act, 2017--- Appeal

Court Directive on Appeal Filing Date in Refund Rejection Case

In these writ petitions, the petitioner seeks a direction for the first respondent to accept the appeal by treating the date of filing as 18.06.2021.

Case Background:

The petitioner received a refund rejection order regarding their claim for a refund of IGST on ocean freight. The appeal against this order was presented on 18.06.2021 before the appellate authority. According to Rule 108(3) of the applicable GST Rules, the petitioner was required to submit a hard copy of the impugned order within seven days of presenting the appeal. However, this requirement was not fulfilled until 02.02.2024.

Petitioner's Argument:

The petitioner’s counsel referenced a judgment from this Court in M/s. PKV Agencies v. The Appellate Deputy Commissioner (GST) (Appeals), Vellore (2023 (2) TMI 932, to argue that Rule 108(3) is a procedural requirement. The counsel contended that the appeal should be processed as long as it was filed within the prescribed time limit. The counsel further noted that the appellate authority already had access to the impugned order and that denying the appeal would cause significant prejudice to the petitioner, particularly as the issue of refund of IGST on ocean freight had been addressed by multiple High Courts.

Respondent's Position:

Mrs. K. Vasanthamala, the learned Government Advocate, accepted notice for the respondents and pointed out that the appeal was not processed because the petitioner failed to file the physical copy of the impugned order in time.

Court's Observations:

The Court referred to the judgment in PKV Agencies, which aligned with the Orissa High Court's decision in M/s. Atlas PVC Pipes Ltd. v. State of Odisha  The Court concluded that the non-submission of the hard copy of the impugned order is a technical defect and that the appeal should be processed if it was filed within the statutory time limit. In this case, the refund rejection order was issued on 19.03.2021, and the appeal was lodged on 18.06.2021, within the prescribed time limit. Hence, the principles established in PKV Agencies are applicable.

Court's Direction:

The writ petition is disposed of with a directive for the first respondent to process the appeal without rejecting it on the grounds that the physical copy of the impugned order was filed on 02.02.2024. If the appeal is otherwise in order, the first respondent is directed to number the appeal within one month from the date of receipt of a copy of this order.

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