Facts of the Case

T.N.G. Knitwear, through its proprietor Sh. Sanjeev Kumar, filed Civil Writ Petition No. 5724 of 2023 before the High Court of Punjab and Haryana at Chandigarh, seeking a writ of certiorari to quash Order-in-Appeal No. LUD-GST-001-APP-32/2023 dated 09.02.2023, passed in Appeal No. APPL/ADC/GST/249/2021-GST-APL-LDH. By that Order-in-Appeal, the appellate authority (respondent No. 1, Commissioner (Appeals), Central Goods & Services Tax) had referred the petitioner's refund matter back to the Adjudicating Authority (respondent No. 3) for fresh consideration.

By the time the writ petition reached final hearing before a Division Bench of Justice Ritu Bahri and Justice Manisha Batra on 31.08.2023, the remand proceedings ordered by the Order-in-Appeal had already concluded. Counsel for the petitioner placed on record a subsequent order dated 07.07.2023 (taken on record as Annexure 'R1'), which showed that the Adjudicating Authority had, pursuant to the remand, rejected the petitioner's refund claim.

Issues Involved

  1. Whether the Order-in-Appeal dated 09.02.2023 remanding the refund matter to the Adjudicating Authority was legally sustainable.
  2. Whether the writ petition survived for adjudication once the remanded proceedings had already concluded with a fresh rejection of the refund claim.

Petitioner's Arguments

  • The petitioner sought quashing of the Order-in-Appeal that referred the refund matter back to the Adjudicating Authority instead of deciding the appeal on merits.
  • The petitioner placed the subsequent order dated 07.07.2023 on record, showing that the refund claim had in fact been rejected on remand.

Respondent's Arguments

  • No substantive contest was recorded from the CGST respondents at the final hearing; Sr. Standing Counsel appeared for the respondents but the matter was disposed of on the basis of the intervening factual development.

Court Order / Findings

  • The Court noted that, pursuant to the impugned Order-in-Appeal, the Adjudicating Authority had already passed a fresh order dated 07.07.2023 rejecting the petitioner's refund claim.
  • Keeping this subsequent development in view, the Court disposed of the writ petition by granting the petitioner liberty to challenge the fresh rejection order of 07.07.2023 in accordance with law, if so advised.
  • The Court did not examine or rule on whether the original remand by the Order-in-Appeal was itself correct.

Important Clarification

The Court did not validate or invalidate the appellate authority's decision to remand the matter instead of deciding the appeal itself; the case became academic once a fresh rejection order was already passed on remand. Taxpayers who receive a remand order in a GST appeal, and are then met with an adverse order in the remanded proceedings, should challenge that fresh order through the appropriate appellate or writ remedy rather than continuing to litigate the original remand order.

Sections Involved

  • Central Goods and Services Tax Act, 2017 – governing the underlying refund claim and appellate proceedings.
  • Article 226, Constitution of India – writ jurisdiction of the High Court invoked to challenge the Order-in-Appeal.

Decision – In Favour of

Disposed of without a decision on merits. The Court granted the petitioner liberty to separately challenge the fresh order dated 07.07.2023 rejecting the refund claim, rather than deciding the validity of the original remand.

Case Details

  • Court: High Court of Punjab and Haryana at Chandigarh
  • Case No.: CWP-5724-2023
  • Neutral Citation: 2023:PHHC:113801-DB
  • Coram: Justice Ritu Bahri and Justice Manisha Batra
  • Date of Order: 31 August 2023

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.