2025 (1) TMI 1308 - HC - GST

Challenge to revisional order passed by the Revisional Authority under Section 108 of U.P. Goods and Services Tax Act 2017 - maintainability of revision petition - Availability of alternative remedy of appeal - HELD THAT - If the revision was not maintainable on the ground that there was a provision of appeal then the Revisional Authority should not have discussed any other aspect of the matter however if he entered into merits of the matter in the sense as to whether the parameters and prerequisites for exercise of revisional powers under Section 108 were existing or not then he could not have observed that the writ petition is not maintainable. The order is not clear. Sub-section 2 of Section 108 of the Act 2017 says that - The Revisional Authority shall not exercise any power under sub-section (1) if (a) the order has been subject to an appeal under section 107 or section 112 or section 117 or section 118. The words - the order has been subject to an appeal under Section 107 means that against such an order an appeal has been filed. Noway these words can be understood as implying that first of all the applicant who has filed the revision under Section 108 should file an appeal and only thereafter a revision will lie against such an order passed in appeal. Conclusion - The impugned order in either eventuality is not maintainable. If it is taken as a decision on merits it does not consider the facts of the case and the pleas raised in the revision. If it is taken as an order dismissing the revision as not maintainable then it is against the provisions of Section 108. The impugned order is quashed. Petition allowed.

ISSUES PRESENTED and CONSIDERED

The core legal question considered in this judgment revolves around the maintainability of a revision petition under Section 108 of the U.P. Goods and Services Tax Act, 2017. Specifically, the issues are:

1. Whether the revision petition filed by the petitioner was maintainable under Section 108 of the U.P. Goods and Services Tax Act, 2017.

2. Whether the Revisional Authority erred in dismissing the revision petition on the grounds of non-maintainability and/or on merits.

ISSUE-WISE DETAILED ANALYSIS

Issue 1: Maintainability of the Revision Petition under Section 108

Relevant Legal Framework and Precedents: Section 108 of the U.P. Goods and Services Tax Act, 2017, outlines the powers and limitations of the Revisional Authority. Sub-section (2) of Section 108 specifies conditions under which the Revisional Authority shall not exercise its power, including if the order has been subject to an appeal under certain sections or if specific time periods have elapsed.

Court's Interpretation and Reasoning: The Court analyzed the language of Section 108, particularly sub-section (2), which restricts the Revisional Authority from exercising power if an appeal has been filed under sections 107, 112, 117, or 118. The Court clarified that the phrase "the order has been subject to an appeal" implies that an appeal must have been filed against the order, not that an appeal must be filed before a revision can be considered.

Key Evidence and Findings: The Revisional Authority dismissed the revision petition, suggesting it was not maintainable due to the availability of an appeal process. However, the Court found that the Revisional Authority also made observations on the merits, which was inconsistent with a dismissal on non-maintainability grounds.

Application of Law to Facts: The Court applied the statutory interpretation of Section 108 to the facts, determining that the Revisional Authority's decision was flawed. The dismissal of the revision as not maintainable was incorrect because the law does not require an appeal to be filed before a revision can be considered.

Treatment of Competing Arguments: The petitioner's counsel argued that the revision was maintainable and that the Revisional Authority's order was cryptic and lacked proper consideration of the facts. The respondent's counsel contended that the revision was not maintainable. The Court sided with the petitioner, emphasizing the statutory language and the Revisional Authority's contradictory approach.

Conclusions: The Court concluded that the order dismissing the revision was not maintainable under Section 108, as it neither properly addressed the merits nor adhered to the statutory requirements for non-maintainability.

Issue 2: Error in Dismissal on Grounds of Non-Maintainability and/or Merits

Relevant Legal Framework and Precedents: The Court examined the procedural requirements for a valid exercise of revisional powers under Section 108, including the need for a reasoned order that considers the facts and grounds raised in the revision.

Court's Interpretation and Reasoning: The Court noted that if the Revisional Authority intended to dismiss the revision on non-maintainability grounds, it should not have engaged with the merits of the case. Conversely, if it considered the merits, a detailed analysis and reasoning were required.

Key Evidence and Findings: The Revisional Authority's order was found to be ambiguous, as it contained observations on the merits while simultaneously dismissing the revision as non-maintainable.

Application of Law to Facts: The Court applied the principles of administrative law, requiring clarity and reasoned decision-making. The Revisional Authority's failure to provide a clear basis for its decision rendered the order legally unsustainable.

Treatment of Competing Arguments: The petitioner's argument that the order was cryptic and lacked proper application of mind was accepted by the Court. The respondent's position that the order was solely about non-maintainability was rejected due to the contradictory content of the order.

Conclusions: The Court concluded that the Revisional Authority's order was invalid due to its ambiguous nature and failure to adhere to legal standards for decision-making.

SIGNIFICANT HOLDINGS

The Court held that the impugned order was not maintainable in either scenario-whether considered on merits or as a dismissal for non-maintainability. The order was quashed, and the revision was restored for fresh consideration by the Revisional Authority.

Preserve Verbatim Quotes of Crucial Legal Reasoning:

The Court emphasized that "the impugned order in either eventuality is not maintainable. If it is taken as a decision on merits it does not consider the facts of the case and the pleas raised in the revision. If it is taken as an order dismissing the revision as not maintainable, then, it is against the provisions of Section 108."

Core Principles Established:

The judgment reinforces the principle that statutory authorities must provide clear and reasoned orders. It also clarifies the interpretation of Section 108 concerning the maintainability of revisions and the relationship between appeals and revisions.

Final Determinations on Each Issue:

The Court allowed the writ petition, quashed the impugned order, and directed the Revisional Authority to reconsider the revision afresh in accordance with the law, taking into account the Court's observations.

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