2024 (7) TMI 1521 - HC - GST

Challenge to Circular No.80/54/2018-GST dated 31.12.2018 - taxability of fish meals prepared by the petitioners - HELD THAT - The fall out of the orders of the Hon'ble Division Bench has now culminated in the respective impugned orders, which have been passed against the respective petitioners. It is noticed that the respective petitioners have filed their replies to the notices that preceded the impugned orders and had also participated in the proceedings. This Court is of the view that to balance the interest of the petitioners and the Revenue, there shall be a stay of all recovery proceedings pending further orders of the Hon'ble Supreme Court. Since the impugned orders are the appealable orders in terms of Section 107 of the respective GST enactments, the petitioners are directed to file statutory appeal before the respective Appellate Commissioner under Section 107 of the respective GST enactments within a period of 30 days from the date of receipt of a copy of this order. Petition disposed off.

Summary

Issues:
1. Challenge to Circular No.80/54/2018-GST regarding tax liability on fish meals.
2. Reversal of decision by the Division Bench.
3. Appeal before the Supreme Court.
4. Stay of recovery proceedings.
5. Direction to file statutory appeal before the Appellate Commissioner.

Analysis:
1. The dispute in this case revolves around Circular No.80/54/2018-GST, which clarified the tax liability on fish meals prepared by the petitioners. The petitioners, along with others, had previously challenged this circular successfully in earlier proceedings.

2. A subsequent order dated 05.10.2021 by the single Judge quashed the circular. However, the Department appealed this decision before the Division Bench, resulting in the reversal of the single Judge's decision on 03.11.2023. This led to the dismissal of various writ petitions.

3. The petitioners have now taken the matter to the Honorable Supreme Court through Special Leave Petitions (SLPs) to challenge the impugned orders. The Supreme Court, through separate orders, has restrained the Department from initiating any recovery proceedings pending further adjudication.

4. Despite arguments regarding the scope of Section 168 of the GST enactment, the High Court emphasized that it is not an appellate court and that the matter is already pending before the Supreme Court. In light of this, the Court balanced the interests of the petitioners and the Revenue by staying all recovery proceedings until further orders from the Supreme Court.

5. The High Court directed the petitioners to file statutory appeals before the respective Appellate Commissioner within 30 days from the date of receipt of the order. The Appellate Commissioner is instructed to entertain these appeals and issue final orders, subject to the outcome of the pending SLPs before the Supreme Court challenging the validity of Circular No.80/54/2018-GST.

In conclusion, the Writ Petitions were disposed of with no costs, and connected Miscellaneous Petitions were closed, pending the final resolution of the matter before the Supreme Court.