LI Network
Published on: January 19, 2024 at 12:20 IST
The Orissa High Court has determined that a writ petition is not maintainable in a case where the assessee is required to approach the tribunal due to the GST department’s failure to follow the direction of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT).
In a case challenging an order dated November 22, 2021, confirming the demand of central excise duty against the petitioner while dropping the rest of the demand, the Court held that it is essential for the authority to provide a fair opportunity for the petitioners to be heard in accordance with CESTAT’s direction.
Failure to follow the tribunal’s direction constitutes a significant lapse on the part of the authority, and the proper course of action for the petitioners would be to bring this fact to the attention of CESTAT.
The petitioner argued that the order by the Principal Commissioner, GST & Central Excise, lacked proper application of mind and violated principles of natural justice by not providing requested documents and a fair opportunity for a hearing. The CESTAT had earlier pointed out errors in the order and remanded the matter for fresh adjudication.
The GST & Central Excise Department contended that the petitioners did not avail the opportunity of hearing provided by the authority and should have filed an appeal instead of approaching the High Court directly through a writ petition.
The Court, while refusing to entertain the writ petition, granted liberty to the petitioners to prefer an appeal in line with the available alternative remedies.
The case is titled “M/s. Ipinit Vanaspati Ltd., Cuttack & Ors. Versus Principal Commissioner, GST & Central Excise, Bhubaneswar, Odisha,