GST UPDATE NO. 83rd ON CONDONING THE DELAY IN SUBMISSION OF CERTIFIED COPY OF ORDER

It is often observed that procedural requirements are considered as substantial conditions by the departmental authorities by strictly interpreting the provisions contained in the statue. However, Courts have time and again intervened and have provide appropriate relief to the assessees. Recently, the hon’ble Orissa High Court in the case of SHREE UDYOG V. COMMR. OF STATE TAX ODISHA & ORS., allowed the writ petition filed for delay in enclosing a certified copy of order appealed. The outcome of this decision is the subject matter of discussion of our present update.

The petitioner has filed appeal against the order rejecting the appeal filed by the Commissioner Appeals on the ground that the certified copy of order was not submitted within the prescribed time period as required under Rule 108 (3) of the CGST Rules, 2017. The petitioner has argued that the appeal was filed on time but it was not accompanied by the certified copy thereof since the lawyer who had filed the appeal was in self-quarantine as he had come into contact with a client who had tested positive for Covid-19.

The Hon’ble High court held that the reason for delay in furnishing such certified copy ought to have been accepted by the Appellate Authority and the delay in that regard ought to have been condoned. This is a case of substantial compliance and the interests of justice ought not to be constrained by a hyper technical view of the requirement that a certified copy of the order appealed against should be submitted within one week of the filing of the appeal.

Accordingly, the impugned order of the Appellate Authority rejecting the appeal on the ground of delay, was set aside by the High Court. The appeal was restored to the file of the Additional Commissioner of State Tax (Appeal). The Appellate Authority will proceed to decide the appeal on merits and endeavour to dispose it of by a reasoned order in accordance with law.

The Hon’ble High court also clarified that the Appellate Authority may adopt a liberal approach considering that these are times of restricted functioning of Courts and tribunals due to the Covid pandemic. As long as the appeal is accompanied by an ordinary downloaded copy of the order appealed against, verified as a true copy by the Advocate for the Appellant, the delay in filing such certified copy, subject to it not being extraordinary, the Appellate Authority may, as long as the restricted functioning of the Court and Tribunals due to the Covid pandemic continues, be condoned.

The above decision is very beneficial to the assessees as it seeks to take a liberal view as regards submission of certified copy of appeal is concerned. We are heading towards Digital India but department is still insisting physical certified copy of order to be furnished within seven days from online appeal filing date in order to consider the appeal to have been filed within the stipulated time. It is expected that the appeal mechanism is completely automated in the days to come with no requirement of any kind of manual submission.

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GST UPDATE NO. 83rd ON CONDONING THE DELAY IN SUBMISSION OF CERTIFIED COPY OF ORDER

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