2025 (5) TMI 558 - HC - GST

Maintainability of appeal - delay in submission of the certified copy of the impugned order as required under Rule 108 of the CGST Rules 2017 - HELD THAT - It is admitted that the appeal against the order dated 16.08.2022 passed by the Proper Officer was preferred on 15.11.2022. It is also not in dispute that along with the appeal copy of the order appealed against was also filed. The said fact has specifically been mentioned in paragraph no. 22 of the writ petition which has not been denied by the State in paragraph no. 11 of the counter affidavit. During the pendency of the appeal subsequent amendment to rule 108 came on 16.12.2022. As per the unamended rule 108 (3) of the Rules the time of filing certified copy of the order appealed against was within 7 days of submission of appeal; whereas as per the amended rule 108(3) of the Rules where the decision and order against is not uploaded on the common portal then the party shall submit certified copy of the said decision within 7 days - in the event certified copy of the order appealed against is not uploaded along with the appeal through e-mode then within 7 days of filing of the appeal a self-certified copy of the order was supposed to be filed within 7 days. The issue in hand has already been decided by the Delhi High Court in Chegg India Private Limited 2024 (12) TMI 1354 - DELHI HIGH COURT wherein the Court has held merely because the physical submission of the appeal and the order was much later when the online filing was within the prescribed time cannot deprive the Petitioner of hearing on merits. In most Courts and Tribunals online filing and electronic filing is now prescribed mode and the Courts are moving towards technologically advance systems. It would be retrograde to opine that online filing which was complete in all respects including electronic copy of the order is not valid filing. The Delhi High Court while considering the issue which is identical to the issue in hand has held that the condition for physically filing the certified copy is not mandatory but procedural in nature. If an appeal is preferred along with all documents and the copy of the appeal the filing of certified copy is not required - Similarly in the case in hand it is not in dispute that the appeal which was preferred on 18.08.2021 was without order appealed against. Once this fact is not in dispute the issue in hand is covered by the judgement of the Delhi High Court in Chegg India Private Limited. Conclusion - The appeal filed by the petitioner was valid and within limitation despite delay in physical submission of certified copy. The amendment to Rule 108(3) applies retrospectively and supports the petitioner s position. Petition allowed.

Summary

1. ISSUES PRESENTED and CONSIDERED

The core legal questions considered by the Court in this matter are:

• Whether the petitioner's appeal filed under the GST Act was validly filed despite the delay in submission of the certified copy of the impugned order as required under Rule 108 of the CGST Rules, 2017.
• Whether the amendment to Rule 108 made on 26.12.2022, which introduced procedural relaxations regarding submission of certified copies of orders, applies retrospectively to appeals filed prior to the amendment.
• Whether the failure to file the certified copy of the order within the prescribed time period under the unamended Rule 108(3) should result in dismissal of the appeal on the ground of laches or whether such procedural non-compliance can be condoned.
• The effect of electronic filing (e-mode) of appeals along with the copy of the impugned order on the requirement to submit a certified copy physically within seven days.

2. ISSUE-WISE DETAILED ANALYSIS

Issue 1: Validity of the appeal filed without timely submission of certified copy under unamended Rule 108(3)

Legal Framework and Precedents: Rule 108(3) of the CGST Rules, 2017, prior to its amendment, required that a certified copy of the decision or order appealed against be submitted within seven days of filing the appeal. The appeal was deemed filed only upon issuance of final acknowledgement after submission of the certified copy. Failure to comply could delay the deemed date of filing of the appeal.

The Court referred to the judgment of the Delhi High Court in Chegg India Private Limited v. Union of India, which held that the requirement to furnish the certified copy within seven days is procedural and that non-compliance should not result in dismissal on merits if the appeal was otherwise filed within limitation.

Court's Interpretation and Reasoning: The Court noted that the petitioner had filed the appeal electronically along with all requisite documents, including the copy of the impugned order, albeit without the certified copy physically submitted within the prescribed time. The State did not dispute that the copy of the order was filed along with the appeal in e-mode.

The Court emphasized that the requirement to file a certified copy within seven days is procedural, not substantive, and that the appeal should not be dismissed merely on the ground of delay in submission of the certified copy if the online filing was completed within the limitation period.

Application of Law to Facts: The petitioner's appeal was filed electronically within the limitation period, and the copy of the impugned order was uploaded on the common portal. The delay was only in the physical submission of the certified copy, which the Court found to be a technical defect not warranting dismissal.

Treatment of Competing Arguments: The State argued that since the certified copy was not submitted within the prescribed period under the unamended rule, the appeal was liable to be dismissed. The Court rejected this, relying on precedents that procedural non-compliance should not defeat substantive rights.

Conclusion: The appeal was validly filed, and the delay in submission of the certified copy was a procedural lapse that did not justify dismissal.

Issue 2: Retrospective applicability of the amendment to Rule 108(3) made on 26.12.2022

Legal Framework and Precedents: The amendment to Rule 108(3) introduced a provision that where the decision or order appealed against is uploaded on the common portal, the date of provisional acknowledgement is considered the date of filing the appeal, and submission of a self-certified copy within seven days is required only if the order is not uploaded.

The petitioner relied on the judgment of this Court in Deepu & Others v. State of U.P., which held that procedural amendments apply retrospectively unless a contrary intention is expressed.

Court's Interpretation and Reasoning: The Court held that the amendment was clarificatory and procedural in nature, intended to streamline the filing process in the context of technological advancements such as online portals.

The Court reasoned that the amendment clarifies that electronic filing with the order uploaded on the portal suffices for filing the appeal within time, and physical submission of a certified copy is not mandatory.

Application of Law to Facts: Since the petitioner had filed the appeal electronically with the order uploaded on the common portal before the amendment came into effect, the benefit of the amended rule applies retrospectively, validating the appeal's filing date.

Treatment of Competing Arguments: The State contended that the amendment should not help the petitioner as the physical certified copy was filed late. The Court rejected this, emphasizing the procedural nature of the amendment and the primacy of online filing.

Conclusion: The amendment to Rule 108(3) applies retrospectively and supports the petitioner's case that the appeal was filed within time.

Issue 3: Effect of electronic filing and requirement of certified copy submission

Legal Framework and Precedents: The Court relied heavily on the Delhi High Court's analysis in Chegg India Private Limited, which recognized the shift towards electronic filing and held that the requirement of physically submitting a certified copy is procedural and not mandatory if the order is uploaded on the common portal.

Court's Interpretation and Reasoning: The Court observed that in the present technological era, the Courts and Tribunals increasingly rely on electronic filing systems. It would be retrograde to hold that online filing without immediate physical submission of certified copies is invalid.

Application of Law to Facts: The petitioner filed the appeal electronically with the order uploaded on the portal, satisfying the procedural requirements effectively. The delay in physically submitting the certified copy did not affect the validity of the appeal.

Treatment of Competing Arguments: The State argued that physical submission was mandatory and delay fatal. The Court rejected this, holding that the procedural requirement cannot override substantive rights and that the electronic filing process suffices.

Conclusion: Electronic filing of appeals along with the order on the common portal fulfills the procedural requirements, and physical submission of certified copies is not mandatory for the appeal to be considered timely filed.

3. SIGNIFICANT HOLDINGS

The Court held:

"The condition to physically file the certified copy of the impugned decision/order is not mandatory. Therefore, an appeal filed prior to the amendment, where the certified copy was submitted with a delay, may be condoned if the online filing was completed within the prescribed limitation period."

"Merely because the physical submission of the appeal and the order was much later, when the online filing was within the prescribed time, cannot deprive the Petitioner of hearing on merits."

"The amendment dated 26th December 2022 which was made in Rule 108 shows that the said amendment was merely clarificatory in nature. It was merely clarifying the rule as it existed and, therefore, the benefit of online filing along with the electronic copy of the decision ought to be considered as sufficiently within the limitation period."

Core principles established include:

• Procedural requirements regarding submission of certified copies under Rule 108(3) are directory and not mandatory.
• Electronic filing of appeals with the decision/order uploaded on the common portal constitutes valid filing within limitation.
• Amendments to procedural rules clarifying filing requirements apply retrospectively unless expressly stated otherwise.
• Substantive rights to appeal should not be defeated by mere procedural lapses, especially in the context of evolving electronic filing systems.

Final determinations on each issue:

• The appeal filed by the petitioner was valid and within limitation despite delay in physical submission of certified copy.
• The amendment to Rule 108(3) applies retrospectively and supports the petitioner's position.
• The impugned order dismissing the appeal on the ground of laches for non-submission of certified copy within seven days is quashed.
• The matter is remanded to the appellate authority for consideration of the appeal on merits.