Facts of the Case

The petitioner, Shree Ranisati Teletech Pvt. Ltd., a company registered at Kotwali Jamal Road, Patna, holding GSTIN 10AARCS7697B1Z3, had been assessed by the Joint Commissioner, State Tax, Patna West Circle, by an order dated 01.02.2021 and a corresponding summary of order in Form GST DRC-07 for the period April 2019 to March 2020. The petitioner carried the matter in appeal (ARN AD1002210021574), but the Additional Commissioner of State Taxes (Appeals), West Division, Patna, by order dated 15.11.2021 (Memo No. 1707/Patna), with a summary in Form GST APL-04 dated 17.11.2021, rejected the appeal. Aggrieved that the appellate order was cryptic and did not deal with the contentions raised, the petitioner approached the Patna High Court.

Issues Involved

  1. Whether an appellate order rejecting a GST appeal without recording reasons or dealing with the grounds raised can be sustained.
  2. Whether the High Court can exercise writ jurisdiction despite the existence of further statutory remedies.
  3. Whether the underlying assessment order and DRC-07 demand ought to be quashed along with the appellate order.

Petitioner's Arguments

  • The appellate order dated 15.11.2021, and the Form GST APL-04 summary, were cryptic, misconceived and non-speaking.
  • The contentions raised by the petitioner in its appeal against the assessment order dated 01.02.2021 were never considered by the Appellate Authority.
  • The petitioner had already deposited 10% of the disputed amount as the pre-condition for hearing the appeal.

Respondent's Arguments

  • Counsel for the Revenue raised no objection to remanding the matter to the Assessing Authority for a fresh decision on merits.
  • The Revenue agreed that no coercive recovery steps would be taken against the petitioner during pendency of the remanded proceedings.

Court Order/Findings

  • The Division Bench held that interference in writ jurisdiction was warranted since the impugned order was ex facie bad in law, notwithstanding the statutory remedy.
  • The order violated principles of natural justice, being passed without sufficient opportunity of hearing and without reasons decipherable from the record.
  • The authorities had failed to adjudicate the matter on the facts and circumstances even though the underlying proceeding was ex parte in nature.
  • The appellate order dated 15.11.2021, the Form GST APL-04 summary, the assessment order dated 01.02.2021, and the DRC-07 summary were quashed and set aside, and the matter remanded for a fresh, reasoned decision.
  • The Court accepted the petitioner's statement of 10% pre-deposit already made and directed an additional 10% deposit of the demand within four weeks, with bank accounts to be de-frozen immediately.

Important Clarification

  • A GST appellate order that merely records rejection without engaging with the grounds urged by the appellant is a non-speaking order and is liable to be set aside in writ jurisdiction.
  • Quashing such an order restores the matter to the original assessing stage for a fresh decision on merits, and does not amount to any finding favouring either side.

Sections Involved

  • Form GST APL-04, CGST Rules, 2017 — summary of the appellate order communicated to the appellant.
  • Form GST DRC-07 — summary of the demand order under the GST law.

Decision – In Favour of

Disposed of with directions, substantially in favour of the Assessee — the non-speaking appellate rejection and the underlying assessment order were quashed and the matter remanded for fresh adjudication, subject to an additional 10% pre-deposit.

Related Case Laws

No related case laws are available on this site at present for cross-reference on this specific point.

Case Details

  • Court: Patna High Court
  • Case No.: Civil Writ Jurisdiction Case No. 4710 of 2022
  • Coram: Hon'ble The Chief Justice (Sanjay Karol, CJ) and Hon'ble Mr. Justice S. Kumar
  • Date of Order: 05 April 2022

Link to Download the Order

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