Unavailability of appellate remedy and non-examination of books justified writ relief and remand under GST assessment proceedings

Writ jurisdiction was held entertainable where the statutory appellate authority under the GST framework had not been constituted, making the alternate remedy unavailable. The assessment orders under Section 73 were also set aside because the books of accounts were not properly examined, particularly on reversal of input tax credit. The matter was remanded to the assessing authority for fresh consideration after giving the taxpayers an effective opportunity of hearing, with liability to be determined anew in accordance with law.

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Issues: (i) Whether the writ petitions could be entertained in the absence of a constituted appellate authority under the Central Goods and Services Tax framework. (ii) Whether the orders passed under Section 73 of the Central Goods and Services Tax Act, 2017 required to be set aside and remanded for fresh consideration on account of non-examination of the books of accounts.

Issue (i): Whether the writ petitions could be entertained in the absence of a constituted appellate authority under the Central Goods and Services Tax framework.

Analysis: Rule 109A of the Central Goods and Services Tax Rules, 2017 was relied upon to point out that an appeal against an order passed by the Joint Commissioner would lie before the Commissioner (Appeals), but no such appellate authority had been constituted to deal with the petitioners' appeals. The absence of an available appellate forum was accepted as a relevant circumstance for invoking writ jurisdiction.

Conclusion: The writ petitions were entertainable despite the non-availability of the appellate authority.

Issue (ii): Whether the orders passed under Section 73 of the Central Goods and Services Tax Act, 2017 required to be set aside and remanded for fresh consideration on account of non-examination of the books of accounts.

Analysis: The impugned orders were stated to have been passed without examining the petitioners' books of accounts, particularly on the aspect of reversal of input tax credit. It was accepted on behalf of the revenue that the assessing authority would re-examine the books of accounts and then pass appropriate orders in accordance with law. The matter therefore called for reconsideration after affording an adequate opportunity of hearing.

Conclusion: The impugned orders were set aside and the matters were remanded to the assessing authority for fresh orders after hearing the petitioners.

Final Conclusion: The petitions succeeded to the extent of quashing the assessment orders and securing a remand for de novo consideration, while leaving the substantive liability to be determined afresh by the assessing authority.

Ratio Decidendi: Where an appellate remedy is unavailable and the assessment order is passed without proper examination of material records, the writ court may set aside the order and remit the matter for fresh adjudication after granting an effective opportunity of hearing.

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