HC grants appeal before appellate authority in accordance with notification No. 53/23, dismissing writ petition
Premier Auto Sales & Service Vs Additional Commissioner (Kerala High Court)
Facts:
- A partnership firm, dealing in motor vehicles, was found to have not filed GST returns and not paid the corresponding tax liability for a specific period.
- The tax authorities issued a show cause notice (Ext.P1) demanding payment of Rs. 8,27,93,915/- towards IGST, CGST, SGST, and Cess for April 2018 to March 2019.
- The firm responded to the notice and partially paid Rs. 8,21,56,286/-, but penalties and interest were also demanded.
- The firm approached the court challenging the order (Ext.P4) instead of appealing as permitted under Section 107 of the CGST Act.
Observations:
- The Court clarified that it doesn’t have appellate jurisdiction but exercises limited judicial review.
- It observed that the tax authority’s order (Ext.P4) wasn’t without jurisdiction and followed natural justice principles. The firm had opportunities to respond to the show cause notice before the order was passed.
- As a result, the Court found no grounds to entertain the writ petition and dismissed it.
- However, it reminded the firm that they have the option to file an appeal against the order before the appellate authority within the extended deadline of January 31, 2024, as specified by a notification (No. 53/23) issued by the Central Board of Indirect Taxes, Ministry of Finance, Government of India.
Conclusion:
- The Court dismissed the writ petition, emphasizing that it doesn’t have the authority to act as an appellate body.
- It also revoked any interim orders granted during the case and dismissed any pending interlocutory applications.
In essence, the Court clarified its jurisdictional boundaries, asserting that it couldn’t act as an appellate authority but reminded the firm of their right to appeal the tax authority’s order within the extended deadline provided by the relevant notification.
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