GST Update

Desk of CA. Praveen Sharma – 761 Series (CAPS 72)
Calcutta High Court in the Case of Bajaj Wheels Private Limited

Part A: Clarification & Recall of Earlier Order

• The matter was brought up under the heading “To Be Mentioned” to seek clarification on the order passed on 13th June 2025.

• As both parties were allowed to reargue the matter, the unsigned order dated 13.06.2025 stands recalled.

Part B: Application CAN 1 of 2025

• The affidavit of service filed was accepted and retained on record.

• The application requested an urgent hearing of the writ petition.

• The Court allowed the application and agreed to take up the writ petition for immediate consideration.

• Application CAN 1 of 2025 is accordingly disposed of.

Part C: Writ Petition WPA 495 of 2024

Background:

• The petitioner challenged the appellate order dated 18th December 2024 that allowed the department’s appeal.

• The original adjudication order dated 30th October 2023, which dropped proceedings for the period July 2017 to March 2018, was overturned without adequate notice or documents served to the petitioner.

• The petitioner alleged:

  • No proper notice of hearing was served.

  • Grounds of appeal were not communicated.

  • The appellate order was non-speaking and lacked clarity.

Court Observations & Decision:

• The appellate authority allowed the department's appeal mainly on procedural grounds, stating:

  • The adjudicating authority failed to examine the legality of ITC availed.

  • No speaking order was passed.

  • The petitioner did not submit clarifications or appear for a hearing.

• However, the appellate authority did not conduct further inquiry as required under Section 107(11) & (12) of the CGST Act.

• The Court held that merely pointing out the failure of the adjudicating authority does not justify allowing the appeal without further inquiry.

Remand & Directions:

• Both the impugned appellate order dated 18.12.2024 and the original adjudication order dated 30.10.2023 were set aside.

• The matter is remanded back to the adjudicating authority for a fresh decision on merits.

• The adjudicating authority must:

  • Issue a fresh notice of hearing,

  • Grant a reasonable opportunity to the petitioner,

  • Decide the case in accordance with law within 8 weeks of receiving the Court’s order.

Final Remarks:

• The Court clarified that it has not commented on the merits of the case.

• All legal issues are left open to be raised afresh before the adjudicating authority.

• The writ petition stands disposed of with the above directions.

LINK: Desk of CA. Praveen Sharma – 761 Series (CAPS)

Regards,
CAPS