Facts of the Case

M/s New Champion Sports, through Abdul Rashid Dar, filed a writ petition before the High Court of Jammu & Kashmir and Ladakh at Srinagar, apparently against GST-related orders dated 18.01.2023 and 08.06.2023.

At the hearing, counsel for the petitioner submitted that he may be allowed to approach the Appellate Authority under Section 107 of the GST Act, 2017, instead of pursuing the writ petition further.

The matter was heard and disposed of by a Division Bench on 14.06.2023.

Issues Involved

  1. Whether the petitioner should be granted liberty to pursue the statutory appellate remedy under Section 107 of the GST Act, with interim protection from coercive action in the interim.

Petitioner's Arguments

  • The petitioner sought liberty to approach the Appellate Authority under Section 107 of the GST Act, 2017, against the impugned orders dated 18.01.2023 and 08.06.2023, and sought interim protection from coercive action while doing so.

Respondent's Arguments

  • No detailed opposition on merits is recorded, as the petitioner itself opted for the statutory appellate route rather than pressing the writ petition.

Court Order / Findings

  • The Court granted the petitioner liberty to appear before the Appellate Authority under Section 107 of the GST Act within three weeks, during which period no coercive action was to be taken based on the impugned orders dated 18.01.2023 and 08.06.2023.
  • The petitioner was also required to file, within the same three weeks, an application seeking stay of the impugned orders, with the continuation of interim protection made subject to any order passed in that stay application.
  • The writ petition was disposed of on these terms. The Court made clear that if the petitioner failed to approach the appellate authority within three weeks, the interim protection would cease to operate.
  • Significantly, the Court expressly stated that, being passed in the 'peculiar facts and circumstances' of the case, this order was not to be cited as a precedent in other cases.

Important Clarification

This order contains no substantive finding on the taxpayer's GST liability or on the validity of the impugned orders — it is a bare procedural direction granting liberty to pursue the statutory appeal, with limited, time-bound interim protection. The Court itself has directed that it not be relied upon as a precedent in any other matter.

Sections Involved

  • Central Goods and Services Tax Act, 2017 – Section 107 (appeal to Appellate Authority)

Decision – In Favour of

The writ petition was disposed of by granting the petitioner liberty to pursue its statutory GST appeal, with short-term interim protection; this is procedural accommodation, not a decision on the merits of the tax dispute, in favour of either side.

Case Details

  • Court: High Court of Jammu & Kashmir and Ladakh at Srinagar
  • Case No.: WP(C) No. 1535/2023, CM No. 3594/2023
  • Coram: Hon'ble the Chief Justice N. Kotiswar Singh and Justice Moksha Khajuria Kazmi
  • Date: 14.06.2023

Link to Download the Order

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