GST Refund Claim Upheld: Assistant Commissioner Cannot Ignore Appellate Orders While Awaiting Tribunal Formation

The HC allowed the writ petition, quashing the Assistant Commissioner's order that rejected the petitioner's GST refund claim. The court held that the Assistant Commissioner cannot refuse to comply with the Commissioner (Appeals-II)'s orders by claiming to challenge them before a yet-to-be-constituted GST Tribunal. The HC directed the Assistant Commissioner to comply with the appellate orders within a specified timeframe, emphasizing that a subordinate authority cannot sit in appeal against a superior authority's decision. The petitioner was granted an opportunity of being heard in the subsequent proceedings.

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Issues:
1. Writ of certiorari for quashing Order rejecting refund claim.
2. Refusal to comply with Order of Commissioner (Appeals-II).
3. Validity of Assistant Commissioner's decision to challenge Orders before GST Tribunal.

Analysis:
Issue 1: The Petitioner sought a writ of certiorari to quash the Order rejecting the refund claim for Q2 and Q3. The Petitioner's appeal before the Additional Commissioner resulted in setting aside the initial rejection orders. However, the Respondent No. 3 subsequently rejected the claim again, citing a review Order directing to file an appeal against the previous decision. The Assistant Commissioner found errors in the appellate orders and held that the refund claim was filed prematurely due to pending appeals before the GST Tribunal.

Issue 2: The Assistant Commissioner refused to comply with the Orders passed by the Commissioner (Appeals-II), citing a decision to challenge them before the GST Tribunal. The Court observed that the Assistant Commissioner cannot sit in appeal against the superior authority's order and must comply with it. The Court quashed the Assistant Commissioner's Order and directed compliance with the Orders in Appeal within a specified timeline.

Issue 3: The Respondents attempted to justify the Assistant Commissioner's decision to challenge the appellate orders before the GST Tribunal, which was not yet constituted. The Court found that the Assistant Commissioner's refusal to comply with the superior authority's orders was unjustified. The Court directed the Assistant Commissioner to pass an appropriate order in accordance with law, granting an opportunity of being heard to the Petitioner and ensuring compliance with the appellate orders without delay.

In conclusion, the Court allowed the writ petition, quashed the impugned Order, and directed the Assistant Commissioner to comply with the appellate orders within a specified timeframe. The parties were instructed to act on the authenticated copy of the Court's Order, and no costs were awarded in the matter.

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