M/S Gemini Distillers (T) Private Limited vs. The State Of Tripura And Ors.

Held

The Court did not decide the merits of the case. After hearing arguments, the learned senior counsel for the petitioner sought permission to withdraw the writ petition. The petitioner intended to avail the appellate remedy available under Section 107 of the Tripura GST Act, 2017, and requested liberty to raise all permissible grounds of law and fact in the appeal. The counsel for the CBEC and the State tax authorities had no objection to this prayer. Consequently, the High Court permitted the withdrawal of the writ petition and disposed of it with the liberty granted to the petitioner. Pending applications, if any, were also disposed of.

Facts

The petitioner, M/s Gemini Distillers (T) Private Limited, filed a writ petition before the High Court of Tripura challenging demand orders dated June 27, 2023, issued by Respondent No. 3. These orders pertained to Financial Years 2017-18, 2018-19, 2019-20, and 2020-21, demanding over Rs. 11 crores in tax, along with penalty and interest. The petitioner argued that the demand orders were perverse, passed without jurisdiction, imposed illegal levies, and were in breach of natural justice. The State tax authorities and the Commissioner, CGST, Agartala, were respondents. During the proceedings, the Commissioner, CGST, Agartala, made submissions regarding a CBEC circular. However, the Additional Commissioner of Taxes & Excise, Government of Tripura, was not fully abreast of relevant state government notifications.

Key Issues

1. Whether the demand orders dated 27.06.2023, for FY 2017-18 to 2020-21, amounting to over Rs. 11 crores (tax) along with penalty and interest, passed by Respondent No. 3, are perverse in law, passed without jurisdiction, impose an illegal levy, and are in serious breach of the principles of natural justice, as contended by the petitioner? Petitioner's Contention: The petitioner argued that the demand orders were perverse, passed without jurisdiction, imposed illegal levies, and violated principles of natural justice. They sought to quash these orders. The petitioner also sought a stay on the demand orders and a direction to prevent coercive action. Revenue/State's Contention: The Commissioner, CGST, Agartala, made submissions regarding Circular No. 31/05/2018-GST dated 09.02.2018 issued by CBEC. The Additional Commissioner of Taxes & Excise, Government of Tripura, was not fully informed about state government notifications and could not make submissions on the instant issue. No specific arguments were recorded for the State tax authorities beyond this.