F Zone Unicom vs. Assistant Commissioner Of State Tax

Held

The Court held that since the order passed by the proper officer under Section 73 of the said Act had not been tested on merit at any stage, and considering that the appellate tribunal is yet to be constituted, it would be prudent to remand the matter back to the appellate authority for re-adjudication. The Court noted that the matter involves scrutiny of records and determination of factual issues. The Court also took into consideration that the entire demand raised by the respondents has already been realized and the payment made by the petitioner would require to be factored in. Consequently, the order passed by the appellate authority dated May 27, 2024, was set aside. The Court directed the appellate authority to hear and dispose of the appeal on merit expeditiously, preferably within 12 weeks. The notice issued in Form GST DRC-13 dated March 14, 2024, was quashed in view of the remand.

Facts

The petitioner, F Zone Unicom, challenged an order passed under Section 73 of the WBGST/CGST Act, 2017, for the tax period July 1, 2017, to March 31, 2018. The initial order dated October 31, 2023, was passed ex parte as the petitioner failed to produce accounts or identify discrepancies, leading to the confirmation of the demand as per the show cause notice dated July 13, 2023. The petitioner's appeal before the appellate authority was rejected solely on the grounds of delay, despite pre-deposit payment. The revenue authorities confirmed the demand, and the entire demand has been realized from the petitioner.

Key Issues

1. Whether the appellate authority erred in rejecting the petitioner's appeal on the ground of delay without adjudicating the matter on merits, particularly when the initial order under Section 73 of the said Act was passed ex parte and the appellate tribunal is yet to be constituted? Petitioner's contention: The petitioner argued that the initial order under Section 73 was passed ex parte and had not been tested on merit. Given the non-constitution of the appellate tribunal, the High Court should adjudicate the matter on merit or remand it to the appellate authority for a fresh adjudication. Revenue's contention: The revenue contended that the appeal was rightly rejected on the ground of delay. The judgment does not record any specific arguments from the revenue regarding the merits of the case or the ex parte nature of the initial order.