Delta Autocorp LLP vs. Union Of INDIA And Ors.

Facts

The petitioner, Delta Autocorp LLP, filed a writ petition challenging an adjudication order and an order of the Appellate Authority concerning Electric Vehicles. The petitioner drew the Court's attention to a Circular dated August 3, 2022, issued by the Government of India, Ministry of Finance, contending that the impugned orders were contrary to this Circular. The State GST authority, represented by Mr. Ghosh, acknowledged that while the State Government had not yet issued a similar circular, it intended to do so shortly. The State GST authority suggested remanding the matter to the Adjudicating Authority to consider the petitioner's refund claim in light of the aforementioned Circular.

Held

The Court considered the submissions of both parties. It noted the petitioner's reliance on the Circular dated August 3, 2022, and the State GST authority's submission that a similar circular was forthcoming from the State Government. The Court found it appropriate to set aside the impugned adjudication order and the order of the Appellate Authority. The matter was remanded back to the Adjudicating Authority. The Adjudicating Authority is directed to pass a fresh speaking order, taking into consideration the benefits provided to the petitioner in the Circular dated August 3, 2022. This fresh order is to be passed within eight weeks from the date of communication of this order. The Court did not expressly leave any issue undecided, as the remand implicitly addresses the core dispute based on the new circular.

Key Issues

1. Whether the impugned adjudication order and the order of the Appellate Authority relating to Electric Vehicles are contrary to Circular No.179/11//2022-GST dated August 3, 2022, issued by the Government of India, Ministry of Finance. Petitioner's Contention: The petitioner argued that the impugned orders were contrary to the Circular dated August 3, 2022, which provides benefits to assessees. They relied on this Circular to support their claim. Revenue/State's Contention: The State GST authority, while not having issued a similar circular yet, indicated that the State Government was planning to issue one soon. They submitted that the matter should be remanded back to the Adjudicating Authority to consider the petitioner's refund claim in light of the Government of India's Circular.