Kic Resources Limited And Anr vs. Union Of INDIA And Ors.

Facts

The petitioner, K.I.C. Resources Limited, has filed a writ petition challenging an order dated March 21, 2023, passed by the Commissioner of CGST & CX. This order dismissed the petitioner's appeal both on merits and on the ground of a one-month delay in filing. The respondent authority, represented by Mr. K. K. Maiti and Mr. Tapan Bhanja, submitted that the impugned order is appealable before the CESTAT. The writ petition was heard by the High Court.

Held

The High Court disposed of the writ petition by observing that if the petitioner files a further appeal before the appropriate forum (CESTAT) against the impugned order of the appellate authority, the same shall be considered and disposed of on merit. Crucially, the Court directed that the issue of limitation (the one-month delay) should be ignored when considering the further appeal. The Court did not decide on the merits of the petitioner's original appeal or the validity of the appellate authority's order itself, but rather provided a procedural direction for the subsequent appellate stage. The ratio is that when an order is appealable, and a party seeks to challenge it in writ, the court may direct consideration on merits by ignoring limitation at the next appellate stage, facilitating a substantive hearing.

Key Issues

1. Whether the High Court, in its writ jurisdiction, should entertain a challenge to an order of the appellate authority that is otherwise appealable before the CESTAT, considering the petitioner's grounds of challenge relate to both the merits of the appeal and the dismissal on grounds of delay. Contentions: Petitioner: Argued that the appellate authority's order dismissing the appeal on both merits and delay warrants High Court intervention. Revenue (CGST authorities): Contended that the impugned order is appellable under the statute before the CESTAT, implying that the High Court should not entertain the writ petition.