Introduction

The Hon’ble Madras High Court in Indian Potash Ltd. v. Deputy Commissioner (ST) [W.P. Nos. 12497, 12498, 12500 & 12501 of 2024, dated June 06, 2024] directed the adjudicating authority to entertain an appeal that was earlier rejected due to the non-submission of the order copy by the assessee before the appellate authority.

Facts of the Case

M/s. Indian Potash Ltd. (“the Petitioner”) filed an IGST refund application related to ocean freight, which was rejected by the adjudicating authority. Aggrieved by the order, the Petitioner filed an appeal before the first appellate authority but failed to submit the copy of the adjudicating authority’s order. According to Rule 108(3) of the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”), the assessee is required to submit the order copy within seven days of presenting the appeal. Due to this procedural lapse, the appellate authority rejected the appeal.

Issue

Whether the Revenue department can reject a refund application based solely on a procedural lapse.

Held

The Hon’ble Madras High Court held: