Flexible Interpretation of Rule 108: Electronic Appeal Saved by Technicality, Merits to Be Reconsidered

HC allowed writ petition challenging appeal rejection. Court interpreted Rule 108 of CGST Rules flexibly, emphasizing that technical non-compliance in submitting self-certified copy should not invalidate electronic appeal. Drawing from precedents, the court directed appellate authority to rehear appeals on merits within three months, quashing the original dismissal order.

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Issues Involved:
The judgment deals with a writ petition under Article 226 of the Constitution of India challenging the rejection of an appeal by the respondent based on the timeliness of filing a self-certified copy of the decision as per Rule 108 of the Central Goods and Services Tax Rules, 2017.

Rule 108 Interpretation:
The petitioner argued that Rule 108 of the Rules does not mandate the submission of a self-certified copy of the decision when the appeal is filed electronically and uploaded on the common portal in FORM GST APL-01. The rule specifies the procedure for filing appeals to the Appellate Authority under section 107 of the Central Goods and Services Tax Act, 2017.

Precedent from Orissa High Court:
Citing a case from the Orissa High Court, it was noted that non-submission of a certified copy should not lead to the dismissal of an appeal if the copy of the impugned order was available on the GST portal at the time of filing the appeal. The court emphasized that such non-compliance should be considered a technical defect rather than a substantive issue.

Precedent from Madras High Court:
Referring to a decision from the Madras High Court, it was highlighted that the requirement to furnish a certified copy within seven days of filing an appeal is procedural and can be condoned. The court stressed that failure to submit the certified copy within the stipulated time frame should not automatically result in the dismissal of the appeal.

Judicial Interpretation and Decision:
After considering the judgments of the Orissa and Madras High Courts along with the relevant provisions of the CGST Act and Rules, the court concluded that the appeal should not be dismissed solely for the delay in filing the certified copy within seven days. The court quashed the impugned order and directed the appellate authority to rehear the appeals and issue a reasoned decision on the merits within three months.

Conclusion:
The writ petition was allowed, setting aside the earlier order and providing directions for a fresh hearing of the appeals in accordance with the interpretation of Rule 108 and relevant judicial precedents.

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