Orissa HC Advices for Approaching Appropriate Tribunal when GST Department fails to Comply CESTAT Directives
In a recent development, the Orissa High Court has underscored the significance of approaching the appropriate tribunal for redressal in matters related to the Goods and Services Tax (GST) in a Case-WP(C) No.8935/2022. The court dismissed a writ petition, stating that the petitioner M/s. Ipinit Vanaspati Ltd of Cuttack should have sought relief from the tribunal instead, citing the failure of the GST department to comply with the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) directives.
The bench, comprising Acting Chief Justice Dr. B.R. Sarangi and Justice Murahari Sri Raman, emphasized the need for a fair hearing as per CESTAT’s instructions. It highlighted that if the authority failed to adhere to CESTAT’s directives, it would be a significant lapse in the authority’s conduct when issuing the order. The court suggested that the petitioners, in case of lapses by the authority, should inform CESTAT for proper consideration.
The case revolved around an order dated November 22, 2021, where the department upheld the central excise duty demand against the petitioner while dismissing other demands. The petitioner argued that the order lacked adherence to natural justice principles, as they were not allowed to be heard, and certain requested documents were not provided. Consequently, the petitioner asserted that the order, without due consideration, cannot be legally sustained.
Highlighting the importance of the principles of natural justice, the petitioner emphasized that, following CESTAT’s identification of errors in the authority’s order and the remand of the matter for fresh adjudication, it was mandatory for the authority to provide a fair hearing and supply requested documents for just adjudication. The petitioner claimed 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. 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 granted the liberty to the petitioners to prefer a petition. This ruling emphasizes the importance of exhausting alternative remedies, such as approaching the tribunal, to ensure a fair and comprehensive resolution of GST-related disputes.
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