Appellate remand prohibition: appellate authority must decide appeals on merits; remands to adjudicator set aside and reconsidered.

Whether an appellate authority may remit matters to the original adjudicating authority was considered: the statutory text precludes referring the case back, so an appellate body must, after further inquiry if needed, decide by confirming, modifying or annulling the order rather than remanding. Appellate orders that remitted disputes to re-determine place of supply were set aside and the appeals were directed to be decided on merits within a two-month period by the appellate authority.

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Issues: (i) Whether the Appellate Authority under Section 107(11) of the Central Goods and Services Tax Act, 2017 has power to remit the matter back to the adjudicating authority.

Analysis: The Court examined sub-clause (11) of Section 107 which prescribes that the Appellate Authority shall, after such further inquiry as may be necessary, pass such order as it thinks just and proper, confirming, modifying or annulling the decision or order appealed against but shall not refer the case back to the adjudicating authority that passed the said decision or order. The Court compared the impugned appellate orders which, after recording findings favourable to the petitioner on export conditions, proceeded to remit the matters to the adjudicating authority to re-determine place of supply. Reliance was placed on the Court's earlier decision in Anand & Anand (Law Firm) and on Kronos Solutions India (P.) Ltd. v. UOI where identical statutory prohibition on remand was held to preclude remitting the matter, and the appellate authority was directed to decide appeals on merits. The respondents conceded there is no provision for remand by the Appellate Authority and did not dispute the effect of Section 107(11).

Conclusion: The later part of the appellate orders dated 30.04.2024 (Leading), 28.06.2024 (connected C-1), 31.05.2024 (connected C2) and 31.05.2024 (connected C3) insofar as they remit the matters to the adjudicating authority are set aside; the Joint Commissioner, CGST (Appeals), Noida is directed to decide the appeals in accordance with law within two months.

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