Giyasuddin Molla vs. The Asst Commr Of CGST And Central Execise, Budge Budge Div, Kolkata South Commissionerate And Ors.

Facts

The appellant, Giyasuddin Molla, filed an intra-Court appeal challenging an order dated January 24, 2024, passed by a learned Single Bench in W.P.A. 865 of 2024. The writ petition had challenged the constitutional validity of Section 16(4) of the CGST/WBGST Act. The learned Single Bench had dismissed the writ petition. The appeal before the Division Bench was against this dismissal. The revenue was represented by The Assistant Commissioner of Central Goods and Services Tax & Central Excise, Budge Budge Division & Ors.

Held

The Division Bench held that the learned Single Bench had rightly noted the decision of another Division Bench in M.A.T. 1099 of 2023, which had upheld the constitutional validity of Section 16(4) of the CGST/WBGST Act. Consequently, the Court found no grounds to interfere with the impugned order passed by the learned Single Bench. The ratio decidendi is that a subsequent Division Bench is bound by the decision of a prior Division Bench of the same High Court on a similar issue of constitutional validity. The appeal and the connected application were dismissed.

Key Issues

1. Whether the constitutional validity of Section 16(4) of the CGST/WBGST Act is upheld, as decided by a Division Bench of this Court? The appellant argued that Section 16(4) of the CGST/WBGST Act is unconstitutional. The respondents (revenue) contended that the constitutional validity of Section 16(4) of the Act has already been upheld by a Division Bench of this Court in M.A.T. 1099 of 2023, dated December 13, 2023. The Court had to decide whether to interfere with the Single Bench's order which followed this precedent.