M/S Chisti Enterprises vs. Union Of INDIA

Held

The Court held that the petitioner has a statutory remedy of appeal under Section 107 of the CGST Act against both the order dated 21.02.2023 rejecting the refund application and the subsequent final order passed by the proper officer. The Court reasoned that the grounds raised by the petitioner in the writ petition are liable to be considered by the appellate authority. Furthermore, the Court noted that after exhausting the remedy of appeal under Section 107, the petitioner would have a further remedy to approach the Goods and Service Tax Appellate Tribunal (GSTAT). Therefore, the writ petition was disposed of with liberty to the petitioner to avail the statutory appellate remedy.

Facts

The petitioner, M/s Chisti Enterprises, filed a writ petition challenging an order dated 21.02.2023, which rejected their application for a refund of an amount deposited under protest during a search. Subsequently, during the pendency of the writ petition, the petitioner received a notice under Section 74 of the CGST Act. The petitioner replied to this notice, and a final order was passed by the proper officer. The Court noted that both the order rejecting the refund application and the final order passed under Section 74 are appealable under Section 107 of the CGST Act.

Key Issues

1. Whether the petitioner has an alternative statutory remedy of appeal against the order dated 21.02.2023 rejecting the refund application and the subsequent final order passed under Section 74 of the CGST Act, as provided under Section 107 of the CGST Act. The petitioner's contention was not explicitly recorded as they approached the High Court via a writ petition. The revenue's argument, implied by the Court's decision, was that a statutory remedy of appeal exists and should be availed by the petitioner. The Court's focus was on the availability of this statutory remedy.