2021 (11) TMI 977 - HC - GST

Maintainability of petition - availability of alternative remedy of appeal - prayer was made that since the time for filing the statutory appeal is going to expire by the end of the month, since the petitioner was bonafide in approaching this Court, it may be permitted to prefer the appeal by 10.12.2021 - section 107 of CGST Act - HELD THAT - This Writ Petition is disposed of with liberty to move an appeal under Section 107 of the Act. If the same is done by 10.12.2021, in accordance with law, the Appellate Authority shall consider the matter on merits after giving opportunity of hearing to the petitioner, and pass orders thereupon expeditiously. The original certified copy of the order be returned by Registry to learned counsel for the petitioner under due acknowledgement of the advocate on record for the petitioner by 26.11.2021 - Petition disposed off.

Summary

Issues Involved:
Challenge to tax order for the periods 2018-19 and 2019-20, Penalty rate discrepancy, Opportunity of personal hearing, Power of Appellate Authority under Section 107(11) of the Act, Filing of statutory appeal, Deposit of disputed tax.

Analysis:
The petitioner sought relief from the High Court to quash the impugned tax order for the periods 2018-19 and 2019-20, alleging illegality, lack of jurisdiction, and violation of natural justice principles. The petitioner had received demand notices followed by a final order imposing tax and a 100% penalty. The petitioner argued that the penalty rate was increased from 25% to 100% in the final order, which was deemed impermissible and illegal.

The petitioner contended that after submitting documents, they were entitled to a personal hearing as per Section 75(4) of the Andhra Pradesh Goods and Services Tax Act, 2017. It was argued that the assessment order should be set aside, allowing the petitioner to explain the submitted documents. Additionally, the petitioner highlighted the absence of the Appellate Authority's power to remand matters to the Assessing Authority under Section 107(11) of the Act.

In response, the Government Pleader argued that the Appellate Authority had the power under Section 107(11) to confirm, modify, or annul the decision appealed against. It was asserted that discrepancies in penalties or adverse findings on submitted documents could be addressed by the Appellate Authority, making it the appropriate forum for the petitioner to seek redressal.

Considering the arguments presented, the High Court disposed of the Writ Petition, granting the petitioner liberty to file an appeal under Section 107 of the Act by a specified date. The Court directed the Appellate Authority to hear the appeal, provide an opportunity for the petitioner to present their case, and issue orders promptly. Notably, the Court exempted the petitioner from depositing the disputed tax until the appeal was filed in accordance with the law.

Furthermore, the Court instructed the Registry to return the certified copy of the order to the petitioner's counsel by a specified date and disposed of any pending miscellaneous petitions. The judgment emphasized the importance of following due legal processes and providing fair opportunities for appeal and redressal in tax matters.