M/S. Mrf Limited vs. The Union Of INDIA

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CWJC/7004/2023HC PatnaGSTCNR BRHC01040302202312 May 2023Bench: THE CHIEF JUSTICE-,MR. JUSTICE MADHURESH PRASAD3 pages
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Facts

The petitioner, M/s. MRF Limited, filed an appeal before the Appellate Authority. The Appellate Authority dismissed the appeal on February 10, 2023, primarily on the grounds of non-production of a certified copy of the order under appeal and failure to comply with Rule 108(3) of the Bihar Goods and Services Tax Rules, 2017, which mandated filing a certified copy within seven days of appeal institution. The petitioner contended that a subsequent amendment to Rule 108 of the CGST Rules, 2017 (Notification No. 26/2022-Central Tax dated December 26, 2022), rendered the requirement of a certified copy obsolete, making an attested copy sufficient, especially when the order was auto-populated on the common portal.

Held

The Court held that the dismissal of the petitioner's appeal by the Appellate Authority was unsustainable. The reasoning was based on the amendment brought about by Notification No. 26/2022-Central Tax, dated December 26, 2022, to Rule 108(3) of the CGST Rules, 2017. This amendment, which was pari materia with Rule 108 of the BGST Rules, 2017, stipulated that where the order appealed against is uploaded on the common portal, a final acknowledgment (FORM GST APL-02) would be issued, and the date of this acknowledgment would be considered the date of filing. Consequently, the requirement for a certified copy was rendered obsolete, and an attested copy of the auto-populated order should have sufficed. The ratio decidendi is that procedural amendments that simplify filing requirements, especially those related to electronic portals, must be given effect to, and appeals should not be dismissed on grounds that have been superseded by such amendments. The Court set aside the order in appeal and restored the appeal to the file of the Appellate Authority for fresh hearing and disposal.

Key Issues

1. Whether the dismissal of the petitioner's appeal by the Appellate Authority on the ground of non-production of a certified copy, in light of the amendment to Rule 108(3) of the CGST Rules, 2017 (and its pari materia equivalent in the BGST Rules, 2017), was legally sustainable? Petitioner's contention: The petitioner argued that Notification No. 26/2022-Central Tax, dated December 26, 2022, amended Rule 108(3) of the CGST Rules, 2017. This amendment, which is pari materia with Rule 108 of the BGST Rules, 2017, substituted the requirement for a certified copy with a provision where a final acknowledgment (FORM GST APL-02) issued by the Appellate Authority would be considered the date of filing. Therefore, the requirement for a certified copy was no longer necessary, and an attested copy of the auto-populated order should have been accepted. Revenue/State's contention: The judgment does not record any specific arguments made by the respondent/State.

Sections Cited

Rule 108(3), Rule 108

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.7004 of 2023 ====================================================== M/s. MRF Limited having its office at 2nd Floor, EMARAT AL HARMAIN, Bank Road, Patna, Bihar, 800001 through its Office Manager, James T M (Male), Aged About 46 Years, S/o Mathai Residing at Thadathil House, P.O. and P.S.- Vazhithala, Thodupuzha, District- Idukki, Kerala- 685583. ... ... Petitioner Versus 1. The Union of India through the Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhi- 110001. 2. The Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhi- 110001. 3. The State of Bihar, through the Commissioner cum Secretary, Commercial Tax Department, Govt. of Bihar, Patna. 4. The Commissioner cum Secretary, Commercial Tax Department, Govt. of Bihar, Patna. 5. The Additional Commissioner State Tax (Appeals), Central Division, Patna. 6. The Joint Commissioner of State Tax, Patliputra Circle, Patna, Bihar. 7. The Assistant Commissioner of State Tax, Patliputra Circle, Patna, Bihar. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Vijay Kumar Singh, Adv. For the Respondent/s : Dr. K. N. Singh ASG with Mr. Anshuman Singh Sr. SC, CGST & CX ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD

ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 12-05-2023 Heard learned counsel for the petitioner and learned counsel for the State. The petitioner is aggrieved by the dismissal of an appeal by the Appellate Authority on the ground of non-production of the certified copy. The dismissal was also on account of Rule 2/3 108(3) of the Bihar Goods and Services Tax Rules, 2017 providing for a certified copy to be filed within seven days from the date of institution of the appeal. The appellant failed to do that and hence the Appellate Authority rejected the appeal on 10-02-2023 on that ground. In fact, by Notification No. 26/2022-Central Tax, dated 26th December, 2022, Central Board of Indirect Taxes and Customs, (Department of Revenue) Ministry of Finance, Government of India, had issued a notification by which sub- rule (3) of 108 in the CGST Rules, 2017 which is in pari materia with rule 108 of the BGST Rules, 2017, was amended. The amendment was as hereinbelow:

“13. In the said rules, in rule 108, for sub- rule (3), the following sub-rule shall be substituted, namely:- “(3) Where the decision or order appealed against is uploaded on the common portal, a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorized by him in this behalf and the date of issue of the provisional 3/3 acknowledgment shall be considered as the date of filing of appeal:” In such circumstances, there was no requirement for a certified copy, and attested copy of the order alone was sufficient, especially, when the same was auto populated. In the above circumstances, we set aside the order in appeal at Annexure-P/5 series and restore the appeal to the files of the Appellate Authority. The petitioner shall appear before the Appellate Authority on 14.06.2023, on which date or on any other date, the appeal shall be heard and disposed of as expeditiously as possible. With the aforesaid observations/directions, the writ petition stands allowed.

Rajkishore/ Shyam Bihari- (K. Vinod Chandran, CJ) ( Madhuresh Prasad, J) AFR/NAFR CAV DATE Uploading Date 18-05-2023 Transmission Date

Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.