2023 (10) TMI 97 - HC - GST

Right to file appeal - Aggrieved person - release of detained goods - payment was made by M/s. Blue Star Ltd. for and on behalf of the Petitioner - HELD THAT - Respondent No. 1 is not justified in refusing to take the appeal, proposed to be filed by the Petitioner, on record. The Order-in- Original against which the appeal is proposed to be filed is passed against the Petitioner. The fact that the goods which were being transported were released to M/s. Blue Star Ltd. by making payment of Rs. 20,18,308/- on behalf of the Petitioner would not mean that appeal has to be filed by M/s. Blue Star Ltd. The said payment was made by M/s. Blue Star Ltd. for release of the goods in its capacity as an owner of the goods and the same was also deducted from the account of the Petitioner with M/s. Blue Star Ltd. Therefore, payment was made by M/s. Blue Star Ltd. for and on behalf of the Petitioner, thus, Respondent No. 1 was not justified in refusing to take the appeal on record. The counsel for the Respondents could not bring to notice any provision in the Act which would not entitle a person against whom the Order-in-Original is passed, but the tax and penalty has been paid on his behalf by somebody else cannot file an appeal challenging the Order-in-Original. The appeal has to be filed by person aggrieved and in the present case the Order-in-Original is passed against the Petitioner and therefore, the Petitioner is an aggrieved person and is entitled to file an appeal against the said order. Noting made by Respondent No. 1 on covering letter dated 27th January, 2020 is required to be quashed/deleted - Appeal disposed off.

Summary

Issues Involved:
The refusal of Respondent No. 1 to take appeal on record by a transporter challenging an Order-in-Original passed under Section 129(1) of the CGST Act.

Summary:

Issue 1: Refusal to Accept Appeal

The Petitioner, engaged in transportation, sought relief under Article 226 against Respondent No. 1's refusal to admit their appeal challenging an Order-in-Original under the CGST Act. The Order-in-Original imposed tax and penalty on the Petitioner, which was paid by M/s. Blue Star Ltd., the owner of the goods. The Petitioner contended that the refusal to accept the appeal was unjustified as they were the aggrieved party. Respondents supported the refusal but failed to cite any provision justifying it.

Issue 2: Entitlement to File Appeal

The Court held that the refusal to accept the appeal was unjustified. The Order-in-Original was against the Petitioner, and the payment made by M/s. Blue Star Ltd. was on behalf of the Petitioner. The Court emphasized that the appeal must be filed by the aggrieved party, which in this case was the Petitioner. Respondent No. 1 was directed to quash the noting on the covering letter and instructed the Petitioner to lodge the appeal within four weeks. Respondent No. 1 was ordered to admit and adjudicate the appeal without objections on limitation, ensuring an expeditious process.

This summary provides a detailed overview of the issues involved in the legal judgment, highlighting the key arguments and the court's decision regarding the refusal to accept the appeal by the transporter.