The Orissa High Court has determined that the writ petition lacks merit since the assessee should have approached the tribunal in light of the GST department’s failure to comply with the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT)’s directive.
The bench, consisting of Acting Chief Justice Dr. B.R. Sarangi and Justice Murahari Sri Raman, emphasized that the authority must afford the petitioners a fair hearing under CESTAT’s instructions.
The court noted that if the authority failed to adhere to CESTAT’s directive, it reflected a significant lapse in the authority’s conduct when issuing the order. If the petitioners had informed CESTAT about the authority’s lapses, CESTAT could have considered them.
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The petitioners contested an order dated November 22, 2021, in which the department or respondent upheld the central excise duty demand against the petitioner while dismissing the remaining demands.
The petitioner argued that the order passed by the Principal Commissioner, GST & Central Excise, lacked adherence to the principles of natural justice, as the petitioners were not allowed to be heard, and certain requested documents were not provided. Consequently, the petitioner asserted that the order, devoid of due consideration, cannot be legally sustained.
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Further, the petitioner emphasized that following the Customs Excise and Service Tax Appellate Tribunal’s (CESTAT) identification of errors in the authority’s order and the remand of the matter for fresh adjudication, it was mandatory for the authority to afford the petitioners a fair hearing, complying with the principles of natural justice and supplying the requested documents for just and proper adjudication. The petitioner contended that a grave injustice was done by denying them these fundamental principles.
In response, the GST & Central Excise Department argued that, despite offering an opportunity for a hearing, the petitioners did not avail themselves of it.
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Instead of pursuing an appeal, the petitioners directly approached the Court through the writ petition, which, according to the department, is not maintainable due to the existence of alternative remedies.
The court ruled that it was not inclined to entertain the writ petition. But the liberty is granted to the petitioners to prefer a petition.
| Case Title | M/s. Ipinit Vanaspati Ltd., Cuttack & Ors. Versus Principal Commissioner, GST & Central Excise, Bhubaneswar, Odisha |
| Case No. | W.P (C) No. 8935 of 2022 |
| Date | 10.01.2024 |
| Counsel For Appellant | S. Palit |
| Counsel For Respondent | C.S. Mishra |
| Orissa High Court | Read Order |