Assessee To Approach Tribunal On Failure Of GST Dept. To Follow CESTAT's Direction, Writ Petition Not Maintainable: Orissa High Court
The Orissa High Court has held that the writ petition is not maintainable as the assessee has to approach the tribunal on the failure of the GST department to follow the direction of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT).The bench of Acting Chief Justice Dr. B.R. Sarangi and Justice Murahari Sri Raman has observed that it is incumbent upon the authority to give...
The Orissa High Court has held that the writ petition is not maintainable as the assessee has to approach the tribunal on the failure of the GST department to follow the direction of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT).
The bench of Acting Chief Justice Dr. B.R. Sarangi and Justice Murahari Sri Raman has observed that it is incumbent upon the authority to give due opportunity of hearing to the petitioners adhering to the direction of the CESTAT. If the authority did not follow the direction of the CESTAT, there are gross laches on the part of the authority in passing the order. Had the petitioners brought the fact to the notice of the CESTAT with regard to laches of authority, in that event the CESTAT could have considered the same.
The petitioners challenged an order dated November 22, 2021, by which the department or respondent confirmed the demand of central excise duty against the petitioner and dropped the rest of the demand.
The petitioner contended that the Principal Commissioner, GST & Central Excise, has passed the order without giving the petitioners the opportunity to hear it and without compliance with the principle of natural justice since certain documents, which were asked for by the petitioners, were not supplied to them. Consequently, the order having been passed by the authority without application of mind cannot be sustained in the eye of the law.
The petitioner contended that once the Customs Excise and Service Tax Appellate Tribunal (CESTAT) pointed out the errors in the order of the authority and remanded the matter to the authority for fresh adjudication, it was incumbent upon the authority to give the petitioners the opportunity of hearing in compliance with the principles of natural justice and also provide documents asked for by the petitioners for just and proper adjudication. The petitioner was grossly deprived of the principles of natural justice.
The GST & Central Excise Department contended that though the Authority has given the opportunity of hearing, the petitioners did not avail it. Instead of preferring an appeal, the petitioners have approached this Court directly by filing the writ petition, which is not maintainable due to the availability of alternative remedies.
The court held that it was not inclined to entertain the writ petition. However, liberty is granted to the petitioners to prefer an appeal.
Counsel For Petitioner: S. Palit
Counsel For Respondent: C.S. Mishra
Case Title: M/s. Ipinit Vanaspati Ltd., Cuttack & Ors. Versus Principal Commissioner, GST & Central Excise, Bhubaneswar, Odisha
Case No.: W.P (C) No. 8935 of 2022