2024 (5) TMI 303 - HC - GST

Validity of assessment order - classification of oil coolers as heat exchangers - to be classified within HSN 8419 or 8708 - main grievance of the petitioner is that the Chartered Engineer's certificate was disregarded while concluding that oil coolers should be classified under chapter 8708 instead of 8419 - HELD THAT - The impugned order is dated 30.12.2023 and the period of limitation, without condonation, expires by the end of this month. Since the petitioner challenged the order by way of this writ petition, which was filed on or about 16.03.2024, it is just and necessary that if a statutory appeal is filed, such appeal is received and disposed of on merits. The petition is disposed of by permitting the petitioner to file a statutory appeal before the appellate authority within three weeks from the date of receipt of a copy of this order.

Summary

Issues involved: Classification of oil coolers as heat exchangers under HSN 8419, mis-classification leading to demand of Rs. 34,38,17,664, non-reversal of Input Tax Credit on credit notes, statutory appeal timeline.

Classification of oil coolers: The petitioner, a manufacturer and supplier of oil coolers, challenged an assessment order dated 30.12.2023, which concluded that oil coolers should be classified under chapter 8708 instead of 8419. The petitioner argued that an oil cooler falls within HSN 8419 as a heat exchange unit, supported by a certificate from a Chartered Engineer. The petitioner contended that the impugned order disregarded the engineer's certificate and erroneously equated oil coolers with radiators. The court noted that the petitioner's grievance should be raised during appellate proceedings as the impugned order, issued after a personal hearing, did not warrant interference under Article 226 of the Constitution.

Statutory appeal timeline: The impugned order dated 30.12.2023 set a limitation period for appeal, expiring soon. The petitioner filed a writ petition on 16.03.2024, seeking permission to file a statutory appeal. The court allowed the petitioner to file a statutory appeal within three weeks and directed the appellate authority to receive and decide on the appeal based on merits and in accordance with the law. No costs were awarded, and the related miscellaneous petition was closed.