Tribunal Upholds GST Appeal Process, RP Bound by CGST Orders

The Tribunal dismissed the appeal, holding that the Resolution Professional (RP) exceeded his authority by revising GST claims, emphasizing the RP should have followed the statutory appeal process under the GST Act. The Tribunal confirmed that appellate orders under the CGST Act are binding during the moratorium and upheld the requirement of pre-deposit under the GST Act. The RP was directed to file an appeal before the appropriate GST authority in compliance with statutory mandates.

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Issues Involved:
1. Authority of Resolution Professional (RP) to file an appeal under GST regulations.
2. Binding nature of appellate orders under CGST Act during moratorium.
3. Requirement and impact of pre-deposit under GST Act on CIRP.

Issue-wise Detailed Analysis:

1. Authority of Resolution Professional (RP) to file an appeal under GST regulations:
The RP sought clarification on whether he had the authority under Regulation 13 and 14 of the CIRP Regulations to file an appeal before the Joint Commissioner, GST, as part of the verification and determination of a claim submitted by the GST department. The Adjudicating Authority/NCLT, in its order dated 28 January 2021, held that the RP does not have the adjudicatory power to revise GST claims. The RP’s role is limited to verifying claims based on available information. The Tribunal emphasized that the RP should have filed an appeal under Section 107 of the CGST/SGST Act, 2017, instead of revising the claims himself. The Tribunal concluded that the RP overstepped his jurisdiction by revising the GST assessment orders, which is not permissible under the IBC.

2. Binding nature of appellate orders under CGST Act during moratorium:
The RP also sought clarification on whether any judgment, decree, or order passed by the Appellate Authority under the CGST Act would be binding on the Corporate Debtor during the moratorium period declared by the NCLT. The Tribunal referred to the decision of the Calcutta High Court in Burn Standard, which stated that the moratorium would not prevent the RP from filing an appeal before the State Tax Department. The Tribunal upheld that the RP must comply with statutory requirements under the GST Act, and any appellate order passed would be binding on the Corporate Debtor.

3. Requirement and impact of pre-deposit under GST Act on CIRP:
The RP questioned whether the requirement of a pre-deposit of Rs. 3,79,64,304 under Section 107 of the GST Act would be prejudicial to the interests of the CIRP. The Tribunal noted that the GST amount is a tax liability and cannot be altered by the RP. The Tribunal highlighted that any revision of assessment orders must be made in accordance with GST law and not under the pretext of Section 238 of the IBC, which does not confer appellate or adjudicatory jurisdiction over issues arising under other statutes. The Tribunal dismissed the RP’s argument, stating that the requirement of pre-deposit is a statutory mandate and must be complied with.

Conclusion:
The Tribunal dismissed the appeal, emphasizing that the RP overstepped his jurisdiction by revising GST claims and should have followed the statutory appeal process under the GST Act. The Tribunal clarified that appellate orders under the CGST Act are binding during the moratorium and that the requirement of pre-deposit under the GST Act must be adhered to. The Tribunal upheld the Adjudicating Authority's decision, directing the RP to file an appeal before the appropriate GST authority.

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