2024 (1) TMI 432 - HC - GST

Refund to the petitioner appropriate amounts after retaining 10% towards pre-deposit for filing the statutory appeal - HELD THAT - The review application would be required to be placed and heard by the Bench (Coram - G.S. Kulkarni and Jitendra Jain, JJ) which had passed the order dated 28 November, 2023. As suggested by petitioner, it would be also permissible for the petitioner to move a praecipe on the administrative side of the Court, for the present writ petition to be tagged along with the review application Interim Application (L.) No. 36091 of 2023 as filed on behalf of the Department. Mr. Shah states that appropriate steps in that regard would be taken by the advocate for the petitioner.

Summary

Issues involved: The nullification of orders passed by the High Court by the Deputy Commissioner of State Tax and the subsequent show cause notice issued to the petitioner for rejecting the refund claim.

Judgment Summary:

Issue 1: Nullification of High Court Orders
The petitioner's grievance was that the Deputy Commissioner of State Tax intended to deny the benefits of the High Court order directing a refund to the petitioner. The Court observed that the Deputy Commissioner's actions seemed to nullify the High Court orders, effectively sitting in appeal over them. The Court noted that the Deputy Commissioner had issued a show cause notice calling for a refund claim to be rejected, which was peculiar and raised concerns about the authority's approach. The Court emphasized that such actions should not be allowed as they undermine the authority of the High Court.

Issue 2: Review Application by the Department
The Department had filed an Interim Application for review/modification/clarification of the High Court order. The Court acknowledged the Department's right to seek a review but stated that the contentions raised by the petitioner could only be addressed after the review application was decided. The Court directed that the review application would be heard by the same Bench that passed the original order. The petitioner was allowed to move a praecipe for the writ petition to be tagged along with the review application.

Additional Observation
The Court clarified that its present order did not prevent the Department from restoring the position regarding the input tax credit as directed in the original High Court orders. The Deputy Commissioner was instructed not to take further steps under the show cause notice issued to the petitioner. The Court granted liberty to apply for any further necessary actions.

This judgment highlights the importance of upholding High Court orders and ensuring that administrative authorities do not undermine or overrule judicial decisions. It also emphasizes the procedural aspects of review applications and the need for consistency in legal proceedings.