Source: Bombay High Court

Why in News?

The Bench comprising of Justice G. S. Kulkarni and Justice Jitendra Jain of Bombay High Court has held if the appeal is defective, any adjudication on merits is not permissible by the Appellate Authority and would be without jurisdiction.

• The court laid the observation in a writ petition of JEM Exporter v. Union of India.

Background

• The Petitioner was engaged in the business of exporting mobile handsets.
  • The Petitioner was registered under the Central Goods and Services Tax Act, 2017 (CGST) as a sole proprietor.
• The Petitioner made an application for a refund of Input Tax Credit (ITC) on export of goods and services.
• Instead of dealing with the refund claim, summons under section 70 of the CGST Act was served on the Petitioner to conduct an inquiry about contravention of provisions of the CGST Act and the Rules.
• Later, a show cause notice under Section 74 came to be issued on the ground that the petitioner purchased goods from a non-existent supplier, it was a case of fake ITC.
• Subsequently, an order was passed levying penalty on the petitioner.
• An appeal was filed against the order.
• While hearing the appeal the Commissioner observed that the filing of a certified copy of the order against which the appeal is filed has not been duly complied.
  • Therefore, the Commissioner (Appeal) held that the appeal is to be rejected on this ground itself.

Court’s Observation

• The Court observed that any adjudication on merits will infringe the principles of Natural Justice if appeal is defective on the ground of no proof of pre-deposit, failure to file certified copy of the order and the appeal not having been authenticated as per CGST Rules.

Certified Copy

• A certified copy is a true copy of a public or vital document having an endorsement that it is true copy of that primary document.
• Section 76 of the India Evidence Act, 1872 (IEA) describes the certified copies as a true copy of a public document sealed and signed by a public officer.
• Under Section 79 of IEA, the Court shall presume [to be genuine] every document purporting to be a certificate, certified copy, or other document, which is by law declared to be admissible as evidence of any particular fact and which purports to be duly certified by any officer.

Principles of Natural Justice

• The concept of natural justice has evolved from English common law to establish fairness in the procedure.
• The principles of natural justice are based on the idea that every individual is entitled to unbiased treatment in the eyes of the law.
• It ensures that during the decision-making process no party’s rights are prejudiced.
• The two principles of natural justice are:
  • Nemo Judex In Causa Sua which means no man shall be a judge in his own cause.
  • Audi Alteram Partem which means hear the other side or give equal opportunity to be heard.

Legal Provision

• Section 76 of IEA - Every public officer having the custody of a public document, which any person has a right to inspect, shall give that person on demand a copy of it on payment of the legal fees therefor, together with a certificate written at the foot of such copy that it is a true copy of such document or part thereof, as the case may be, and such certificate shall be dated and subscribed by such officer with his name and his official title, and shall be sealed, whenever such officer is authorized by law to make use of a seal; and such copies so certified shall be called certified copies.
  • Explanation.—Any officer who, by the ordinary course of official duty, is authorized to deliver such copies, shall be deemed to have custody of such documents within the meaning of this section.