Facts of the Case:
In this case, the petitioner appeal filed electronically on the GST portal in accordance with Section 107 and Rule 108 cannot be rejected merely for non-filing of a hard copy or certified copy of the order, especially after the amendment to Rule 108. Hyper-technical procedural objections cannot override substantive justice in GST appellate proceedings. In the course of business, the petitioner availed Input Tax Credit (ITC) on eligible inputs and input services under the Jammu & Kashmir GST Act, 2017.
A show cause notice dated 14.12.2020 was issued under Section 73 of the GST Act proposing demand of CGST and SGST on the ground of mismatch between ITC claimed in GSTR-3B and ITC reflected in GSTR-2A for the period April 2019 to March 2020. The petitioner could not submit a reply, citing severe business disruption due to COVID-19 and lack of awareness of the notice.
Subsequently, the demand of ₹17,14,572/- along with interest and penalty was confirmed by an order dated 02.06.2021. Aggrieved, the petitioner filed an appeal on 27.08.2021 electronically on the GST portal in Form GST APL-01, after making the mandatory pre-deposit. The appeal was accompanied by invoices, reconciliation statements, and the impugned order uploaded on the portal, and a provisional acknowledgement was generated. However, the Appellate Authority rejected the appeal vide order dated 06.03.2023 (Form GST APL-02) solely on the ground that the petitioner had not submitted a hard copy of the appeal and a certified copy of the impugned order.
The petitioner challenged this rejection order before the High Court.
Issue:
Whether an appeal filed electronically on the GST portal in Form GST APL-01 can be rejected solely on the ground that the appellant failed to submit a hard copy of the appeal and a certified copy of the impugned order, despite such requirements not being mandatory under the amended Rule 108 of the J&K GST Rules.
Held that:
The High Court observed that Section 107(5) of the J&K GST Act read with Rule 108 clearly permits filing of appeals electronically. The rules do not mandate submission of a hard copy unless specifically notified by the Commissioner. No such notification was produced by the respondents. Rejection of an appeal merely on the technical ground of non-submission of a hard copy is unsustainable, especially when the appeal was validly filed online within the limitation period and acknowledged on the portal.
In view of the amendment to Rule 108, where the impugned order is already uploaded on the GST portal, there is no requirement to submit a certified copy separately. The respondents erred in applying the pre-amendment position of Rule 108. The appeal was rejected without granting any opportunity of hearing to the petitioner, which is contrary to settled principles of natural justice.
The Court reiterated that procedural rules are intended to advance justice and not to defeat substantive rights. Appeals with arguable merit cannot be dismissed on hyper-technical grounds.
The Court held that an appeal filed electronically on the GST portal in accordance with Section 107 and Rule 108 cannot be rejected merely for non-filing of a hard copy or certified copy of the order, especially after the amendment to Rule 108. Hyper-technical procedural objections cannot override substantive justice in GST appellate proceedings.
Case Name: TC Tours Limited Versus Union Territory of J&K and ors. dated 24.12.2025
To read the complete judgement 2025 Taxo.online 3464
