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2023 (8) TMI 973 - HC - GSTShort payment of compensation Cess - Cut Tobacco or Manufactured Tobacco - Demand confirmed without subjecting the product to testing - violation of principles of natural justice - HELD THAT - Although the Tribunal has not been constituted till date, nevertheless, this issue can be decided by the Appellate Commissioner by calling for a report of the expert regarding the nature of the product. This Court cannot decide questions of fact which are vital for final determination of the issue involved under Article 226 of the Constitution of India. Therefore, this Writ Petition is liable to be dismissed. Since, the petitioner has filed this Writ Petition within the limitation prescribed for filing an appeal under Section 107 of the CGST Act, 2017, Court is inclined to dispose of this Writ Petition by giving opportunity to the petitioner to file a statutory appeal before the Appellate Authority under Section 107 of the CGST Act, 2017 within a period of 30 days from the date of receipt of a copy of this order. If such appeal is filed by the petitioner within the time stipulated herein, the Appellate Authority shall consider the appeal and dispose of the same on merits on its turn and in accordance with law as expeditiously as possible, preferably within a period of six months from the date of receipt of the appeal - Petition disposed off.
Issues:
The judgment involves a dispute regarding the demand for short payment of compensation Cess under the Central Goods and Services Act, 2017 and the Central Goods and Services (Compensation to States) Act, 2017. The key issues include violation of principles of natural justice due to lack of testing of the product in question, disputed questions of facts to be resolved in quasi-judicial proceedings, and the petitioner's right to file a statutory appeal within the prescribed limitation period. Violation of Principles of Natural Justice: The petitioner contested the demand for short payment of compensation Cess, specifically concerning Cut Tobacco or Manufactured Tobacco. It was argued that the respondent confirmed the demand without testing the product, leading to a violation of natural justice. The Court directed the drawing of a sample for testing, but no report was available, indicating a lack of conclusive evidence in the case. Disputed Questions of Facts: The judgment highlighted the existence of several disputed questions of facts that need resolution through quasi-judicial proceedings under the Goods and Service Tax Act. The matter is to be determined by the Appellate Commissioner and the Tribunal, even though the Tribunal has not been constituted yet. The Court emphasized that questions of fact crucial for the final determination cannot be decided under Article 226 of the Constitution of India, indicating the need for further proceedings before the appropriate authorities. Right to File Statutory Appeal: Considering that the petitioner filed a Writ Petition within the limitation period for filing an appeal under Section 107 of the CGST Act, 2017, the Court directed the petitioner to file a statutory appeal before the Appellate Authority within 30 days. The Appellate Authority is instructed to consider and dispose of the appeal on its merits expeditiously, preferably within six months from the receipt of the appeal. The petitioner is granted the right to have a sample tested before the Authority and to request testing before the Testing Authority. Conclusion: The Writ Petition was disposed of with the above observations, allowing the petitioner to pursue the statutory appeal process within the specified timeframe. The judgment emphasized the importance of resolving disputed facts through appropriate quasi-judicial proceedings and affirmed the petitioner's entitlement to a fair hearing and testing of the product in question. The connected Miscellaneous Petition was closed without any costs imposed.
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