Joint Director Overstepped Statutory Bounds by Remanding Case, Violating CGST Act Section 107(11) Provisions

HC found that the Joint Director (CGST) (Appeals) exceeded statutory powers by remanding the case to the original adjudicating authority. The court set aside the order, determining that under Section 107(11) of CGST Act, 2017, the appeal authority cannot refer cases back. Despite Revenue's objection, the writ petition was deemed maintainable due to the absence of a constituted Tribunal, and the matter was directed for fresh consideration by the appeal authority.

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Issues Involved:
The judgment involves the challenge to an order passed by the Joint Director (CGST) (Appeals) and the maintainability of the writ petition.

Challenge to Order by Joint Director (CGST) (Appeals):
The petitioner filed a petition to challenge the order passed by the Joint Director (CGST) (Appeals) remanding the matter back to the original adjudicating authority for de novo adjudication. The petitioner contended that the order was passed in defiance of the provisions of Section 107(11) of the CGST Act, 2017, which outlines the powers of the Appellate Authority. The petitioner argued that the appeal authority cannot refer the case back to the adjudicating authority, as clarified by the legislature. The court found that the appeal authority had failed to exercise its jurisdiction in accordance with the law, and hence, set aside the order and remanded the matter back to the appeal authority for a fresh order after hearing the parties afresh.

Maintainability of Writ Petition:
The counsel for the Revenue raised a preliminary objection regarding the maintainability of the writ petition, stating that the impugned order is appealable under Section 112 of the Act. However, the court found that the Tribunal had not yet been constituted, and in the absence of the appeal authority exercising its jurisdiction in accordance with the law, the writ court could intervene. The court held that since the appeal authority can only confirm, modify, or annul the order under appeal, it cannot refer the matter back to the adjudicating authority. Therefore, the court allowed the writ petition and remanded the matter back to the appeal authority for fresh consideration.

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