The Hon'ble High Court of Allahabad in Visible Alpha Solutions India (P.) Ltd. v. Commissioner, CGST Appeals [WRIT TAX NO.83 OF 2024 dated February 12, 2024] held that the proviso to Rule 108 of CGST Rules requiring filing of self-certified copy of the impugned order was not applicable when an appeal was filed electronically. The Court quashed the rejection order and remanded the matter to the appellate authority to decide the appeal on merits.
Facts of the Case:
Visible Alpha Solutions India (P.) Ltd., the petitioner, filed appeals electronically against an order. The Commissioner, CGST (Appeals), NOIDA, rejected these appeals vide order dated October 18, 2023, on the ground that they were time-barred. The rejection was based on the reasoning that the petitioner had not filed a self-certified copy of the decision or order within the stipulated time as per the proviso to Rule 108 of the Central Goods and Services Tax Rules, 2017.
Aggrieved by this rejection, the petitioner filed a writ petition under Article 226 of the Constitution of India before the High Court of Allahabad. The petitioner's counsel argued that when an appeal is filed electronically and uploaded on the common portal in FORM GST APL-01, there is no requirement to file a self-certified copy of the decision. He contended that both provisos to Rule 108 apply only when the appeal is not uploaded on the common portal.
Upon examination of the impugned order, it was apparent that the appeal was electronically filed within the permitted time of three months as per Section 107 of the Central Goods and Services Tax Act, 2017. The petitioner's counsel referred to Rule 108 of the Rules to support his argument that the requirement of filing a self-certified copy does not apply to electronically filed appeals.
Issue:
Whether the proviso to Rule 108 of CGST Rules requiring filing of self-certified copy of the impugned order is applicable when an appeal is filed electronically?
Held by the Court:
The High Court observed that Rule 108 of the CGST Rules clearly states that an appeal to the Appellate Authority shall be filed in FORM GST APL-01, either electronically or otherwise as notified by the Commissioner.
The Court noted that the first proviso to Rule 108 explicitly states that it applies only "where the decision or order appealed against is not uploaded on the common portal."
The High Court found that in this case, the appeal was electronically filed within the permitted time of three months as per Section 107 of the CGST Act, 2017.
The Court held that the first and second provisos to Rule 108 would not apply in this case, as is clear from the literal interpretation of the first proviso itself.
Based on these observations, the High Court quashed and set aside the impugned order dated October 18, 2023 passed by the Commissioner, CGST (Appeals), NOIDA.
The Court directed the appellate authority to hear the appeals filed by the petitioner de novo and pass a reasoned order on merits within a period of three months from the date of the judgment.
With these directions, the High Court allowed the writ petition filed by Visible Alpha Solutions India (P.) Ltd.
Relevant Sections:
- "Section 107" of the Central Goods and Services Tax Act, 2017
- "Rule 108" of the Central Goods and Services Tax Rules, 2017
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