M/S. Ad North East Air Cargo PVT. LTD. And Anr vs. The Joint Commissioner, W.B. GST, Large Taxpayer Unit, Corporate Div And Ors.

Held

The Court allowed the appeal and the writ petition, setting aside the appellate authority's order dated 20.07.2020. The Court found that a significant legal issue regarding the retrospective amendment to Section 50 of the CGST Act, 2017, by the Finance Act, 2021, had been raised by the appellants. It noted that the appellate authority's order dated 20.07.2020 did not appear to have gone into the effect of this retrospective amendment. Relying on precedents from this and other High Courts which allegedly favour the assessee on this point, the Court concluded that this legal issue warranted consideration. Therefore, the matter was remanded back to the appellate authority for a fresh decision. The Court directed that the appellants be granted an opportunity for a personal hearing and be allowed to place all relevant materials before the appellate authority for a fresh consideration in accordance with law. The matter was remitted to the appropriate appellate authority due to internal changes.

Facts

The appellants, M/s. AD North East Air Cargo Private Limited and another, filed an intra-court appeal against an order dated 04.12.2023, which dismissed their writ petition solely on the grounds of belated approach. The writ petition itself challenged an order passed by the appellate authority dated 20.07.2020. The core of the dispute revolves around the effect of a retrospective amendment to Section 50 of the CGST Act, 2017, introduced by the Finance Act, 2021. The appellants contended that the appellate authority's order dated 20.07.2020 did not consider this retrospective amendment.

Key Issues

1. Whether the appellate authority erred in not considering the effect of the retrospective amendment to Section 50 of the CGST Act, 2017, by the Finance Act, 2021, when passing its order dated 20.07.2020. Petitioner's Arguments: The appellants argued that the issue concerning the retrospective amendment to Section 50 of the CGST Act, 2017, is a significant legal point that was not addressed by the appellate authority in its order dated 20.07.2020. They placed reliance on decisions from this court and other High Courts, asserting that these precedents favour the assessee on this specific issue. They contended that the appellate authority's failure to consider this amendment renders its order legally flawed. Revenue's Arguments: The judgment does not record any specific arguments made by the respondents (The Joint Commissioner, West Bengal GST, Large Taxpayer Unit, Corporate Division and Ors.) on the legal issue.