Court Emphasizes Substantial Justice Over Procedural Technicalities in GST Appeal Process
In a significant ruling, the Jammu and Kashmir High Court has set aside an order rejecting an appeal filed by TC Tours Limited under the Jammu and Kashmir GST Act, 2017. The appeal had been dismissed by respondent authorities on the grounds of non-submission of a hard copy and a certified copy of the impugned order, despite being filed electronically within the statutory period.
The case, heard by Justices Sindhu Sharma and Shahzad Azeem, centered around the procedural requirements for filing an appeal under Section 107 of the J&K GST Act and Rule 108 of the J&K GST Rules. The court noted that the petitioner's appeal was filed electronically and within the prescribed time frame, making the rejection on technical grounds unsustainable.
The petitioner, TC Tours Limited, provides tour-related services and had challenged a demand for taxes amounting to over INR 17 lakh. The demand, issued via a show cause notice in December 2020, was based on discrepancies between the Input Tax Credit (ITC) claimed and that available as per GST returns. The petitioner argued that the mismatch was due to reporting ineligible ITC and subsequent corrections.
The court highlighted that Rule 108 allows for electronic filing of appeals, and amendments had removed the requirement for a certified copy if the order was uploaded on the GST portal. Therefore, the appeal's rejection for lacking a hard copy or certified order was deemed unjust.
Furthermore, the court stressed that denying the appeal without a hearing violated principles of natural justice, affecting the parties' substantial rights. It cited previous judgments reinforcing the stance that procedural rules should not overshadow substantial justice.
The court's decision mandates a fresh review of the appeal by the Appellate Authority, ensuring due process and adherence to natural justice principles.
Bottom Line:
Appeal filed electronically under J&K GST Act cannot be rejected merely for non-submission of hard copy or certified copy of the impugned order, especially when filing hard copy is not mandatory under the rules and certified copy requirement has been removed through amendment.
Statutory provision(s): Section 107 of Jammu and Kashmir GST Act, 2017; Rule 108 of Jammu and Kashmir GST Rules
