Electronic Filing Trumps Technical Hurdles: Tax Appeals Reinstated, Procedural Barriers Overruled Under Rule 108(3) CGST Rules

HC allowed the writ petition challenging the dismissal of tax appeals on technical grounds of limitation. The court found electronic filing valid under Rule 108(3) of CGST Rules, 2017 and directed the Appellate Authority to hear the appeals on merits instead of rejecting them based on procedural discrepancies in manual and electronic filing dates.

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Issues involved:
The judgment addresses the challenge to an Order-in-Appeal passed by respondent No. 2, which rejected three appeals on the ground of limitation due to a discrepancy in filing dates, as per Rule 108(3) of the CGST Rules, 2017.

Summary:
In the present petition under Article 226 of the Constitution of India, the petitioner challenges the Order-in-Appeal in Appeal Nos. 85-87/2022-23 dated 26.04.2023, where the appeals were rejected on the basis of limitation. The appeals were filed electronically on 27.05.2022 but manually on 10.06.2022. Rule 108(3) of the CGST Rules, 2017 states that the date of provisional acknowledgement would be considered as the date of filing of the appeal, provided a self-certified copy of the order is submitted within 7 days. The appeals were dismissed without being taken up on merits due to this technicality.

It has been noted that in a previous case, the Appellate Authority was directed to decide the appeal on merits rather than dismissing it for not appending a certified copy. Referring to a recent judgment, it was highlighted that the provision of a certified copy of the decision or order appealed has been done away with, and relief was granted by setting aside the order, directing the Appellate Authority to decide the appeal on merits. The modification in the procedure under Rule 108(3) allows the date of issuing the provisional acknowledgement to be considered as the date of filing the appeal, ensuring electronic filing is accepted.

Considering the modifications made to the procedure and the importance of ensuring justice through procedural rules, the High Court found that the appeal was filed within the period of limitation if calculated from the date of electronic filing. Therefore, the Order-in-Appeal was set aside, and directions were given to the Appellate Authority to decide the appeal on merits. Consequently, the writ petition was allowed.

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