The Hon’ble Jammu & Kashmir and Ladakh at Srinagar High Court in the case of TC Tours Limited v. Union Territory of J&K & Ors. [WP(C) No. 809/2024, order dated December 24, 2025] held that rejection of a statutory appeal filed electronically in FORM GST APL-01 within limitation along with upload of the impugned order on the GST portal, after requisite pre-deposit under Section 107(6) of the J&K GST Act, merely on the ground of non-submission of hard copy and certified copy of the order is unsustainable, as Rule 108(1) expressly permits electronic filing as a prescribed mode in the absence of any contrary notification by the Commissioner, and amended Rule 108 dispenses with the certified copy requirement where the order is available on the portal; set aside the rejection order dated 06.03.2023 in FORM GST APL-02 and remanded the appeal to the Appellate Authority for decision afresh on merits after affording opportunity of hearing.
Facts:
TC Tours Limited (“the Petitioner”) is engaged in providing tour-related services by planning and organization of tours, arranging transportation, accommodation facilities, meals and guide services, and assisting in marketing tourist destinations and tourism products. For providing these services, the Petitioner procures various inputs and input services in respect of which it avails eligible Input Tax Credit (ITC) as per the provisions of the Jammu & Kashmir Goods and Services Tax Act, 2017 (“J&K GST Act”).
The proper officer (“the Respondent”) issued a Show Cause Notice (SCN) dated December 14, 2020 under Section 73 of the J&K GST Act proposing demand of CGST Rs. 8,57,286/- and SGST Rs. 8,56,546/- along with applicable interest and penalty for the period April 2019 to March 2020, on the ground that the Petitioner had availed ITC in FORM GSTR-3B in excess of ITC available under FORM GSTR-2A. The SCN directed submission of reply by, which the Petitioner could not file due to severe business impact from Covid-19 pandemic and lack of awareness of the SCN, leading to confirmation of the total demand of Rs. 17,14,572/- (tax) plus interest and penalty vide order dated June 02, 2021.
The Petitioner filed an appeal against the after paying pre-deposit 10% of disputed tax plus interest under Section 107(6)), contending that there was no excess ITC availment and that the GSTR-3B vs. GSTR-2A mismatch arose due to reporting of ineligible ITC, ITC reversals, and availment of ITC in subsequent financial years, and uploaded invoices, returns and reconciliation statements in support as Annexure-II, receiving provisional acknowledgement.
The Respondent contended that Rule 108 of the J&K GST Rules clearly provides for submission of hard copy of the appeal along with certified copy of the impugned order, which the Petitioner failed to annex, and therefore the Appellate Authority had rightly rejected the appeal vide FORM GST APL-02 dated March 06, 2023 for non-submission of hard copy as mandatory under Section 107 of the J&K GST Act and pre-amendment Rule 108.
Aggrieved by the impugned order dated March 06, 2023 passed by the Appellate Authority rejecting the appeal in FORM GST APL-02 solely on the ground that “the dealer has not submitted hardcopy as mandatory under Section 107 of the Jammu and Kashmir GST Act, 2017”, without affording any opportunity of hearing and despite electronic filing within limitation and upload of the impugned order on the GST portal, the Petitioner approached the High Court by way of writ petition seeking quashing of the rejection order and remand of the appeal for adjudication on merits.
Issue:
Whether rejection of a GST appeal filed electronically in FORM GST APL-01 within the limitation period of three months under Section 107(1) of the J&K GST Act, with requisite pre-deposit and upload of the impugned adjudication order on the GST portal, is sustainable?
Held:
The Hon’ble Jammu & Kashmir and Ladakh at Srinagar High Court in WP(C) No. 809/2024 held as under:
- Noted that the present petition challenges the impugned order passed by the Appellate Authority rejecting the appeal filed by the Petitioner in FORM GST APL-02 for non-submission of hardcopy as mandatory under Section 107 of the J&K GST Act.
- Observed that, Respondent No. 4 had issued SCN on alleged excess ITC availment where GSTR-3B shows higher value than GSTR-2A, confirmed vide order dated June 02, 2021 for total tax of Rs. 17,14,572/- plus interest and penalty.
- Observed that Section 107(5) of the J&K GST Act mandates filing of appeal “in such form and verified in such manner as may be prescribed”, and Rule 108(1) provides that appeal to Appellate Authority under Section 107(1) shall be filed in FORM GST APL-01 along with relevant documents “either electronically or otherwise as may be notified by the Commissioner”, with provisional acknowledgement issued immediately.
- Held that Rule 108(1) clearly envisages electronic submission of appeal as the primary prescribed mode, and the only alternative is as notified by the Commissioner, but Respondents failed to place on record any such notification mandating hard-copy filing; therefore, rejection merely on ground of non-filing of hard copy is unsustainable, and Respondents could have instead granted time to file hard copy within stipulated period if required.
- Noted that, the Respondents’ further contention of non-upload of certified copy of impugned order, but held that this requirement stands removed vide amendment in Rule 108, where the order appealed against is uploaded on the GST portal, and in the present case the order dated June 02, 2021 was indeed uploaded by the Petitioners.
- Held that filing of hard copy not being mandatory, rejection of appeal on this procedural ground affecting substantial rights of parties is unsustainable and requires to be set aside, as substantial justice cannot be sacrificed at the altar of mere technicalities, and rules of procedure are handmaidens of justice. Electronic filing mode stands statutorily provided under Rule 108, hence no infraction occurred.
- In view of the facts and circumstances, allowed the petition, set aside the impugned order dated, and remanded the matter to the Appellate Authority to decide the appeal afresh on merits in accordance with law after affording opportunity of hearing to the parties.
Our comments:
The judgment interprets Section 107(5) read with Rule 108(1) of the J&K GST Rules to affirm electronic filing via GST portal in FORM GST APL-01 (with provisional acknowledgement) as a valid, standalone prescribed mode for appeals, rejecting Appellate Authority’s insistence on hard copy absent any Commissioner’s notification under the “otherwise as may be notified” clause, thereby prioritising substantial justice over procedural technicalities in line with the digital ecosystem of GST compliance.
In Otsuka Pharmaceuticals India Private Limited v. Union of India & Ors. [2024 Taxo.online 629] the Gujarat High Court held that post-amendment to Rule 108(3) the requirement to submit certified copy of the impugned order within seven days ceases where such order is uploaded/available on the GST portal, as uploading the order alongside FORM GST APL-01 suffices for final acknowledgement in FORM GST APL-02. The present ruling aligns seamlessly by applying the amended Rule 108 to dispense with certified copy mandate since the adjudication order dated 02.06.2021 was portal-uploaded.
Similarly, Saraogi E-Ventures Private Limited & Ors. v. Assistant Commissioner CGST & Ors. [2023 (78) GSTL 226 (Cal)] quashed rejection of online appeal for delayed certified copy submission beyond seven days under unamended Rule 108(3), observing that “if an appeal has got merit it should not be dismissed on such hyper-technical ground… when the appeal itself was filed within the time along with copy of the order online”, and remanded for merits adjudication within three months post-natural justice. This reasoning directly supports the J&K HC’s remand, emphasising that hyper-technical procedural rejections cannot defeat statutory appellate rights under Section 107.
Relevant Provision:
Rule 108 of the Jammu & Kashmir Goods and Services Tax Rules, 2017
“108. Appeal to the Appellate Authority.-
(1) An appeal to the Appellate Authority under sub-section (1) of section 107 shall be filed in FORM GST APL-01, along with the relevant documents, electronically, and a provisional acknowledgement shall be issued to the appellant immediately.
Provided that an appeal to the Appellate Authority may be filed manually in FORM GST APL-01, along with the relevant documents, only if-
(i) the Commissioner has so notified, or
(ii) the same cannot be filed electronically due to non-availability of the decision or order to be appealed against on the common portal, and in such case, a provisional acknowledgement shall be issued to the appellant immediately.
(2) The grounds of appeal and the form of verification as contained in FORM GST APL-01 shall be signed in the manner specified in rule 26.
(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 authorised by him in this behalf and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:
Provided that where the decision or order appealed against is not uploaded on the common portal, the appellant shall submit a self-certified copy of the said decision or order within a period of seven days from the date of filing of FORM GST APL-01 and a final acknowledgment, indicating appeal number, shall be issued in FORM GST APL-02 by the Appellate Authority or an officer authorised by him in this behalf, and the date of issue of the provisional acknowledgment shall be considered as the date of filing of appeal:
Provided further that where the said self-certified copy of the decision or order is not submitted within a period of seven days from the date of filing of FORM GST APL-01, the date of submission of such copy shall be considered as the date of filing of appeal.
Explanation. -For the provisions of this rule, the appeal shall be treated as filed only when the final acknowledgement, indicating the appeal number, is issued.”
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