HC Rules Appellate Authority Cannot Remand Cases

Case Details: Kanha Shree Steels vs. Assistant Deputy Commissioner - [2025] 177 taxmann.com 617 (Allahabad)

Judiciary and Counsel Details

• Piyush Agrawal, J.
• Suyash Agarwal for the Petitioner
• Gaurav Mahajan, A.S.G.I. & Saumitra Singh, C.S.C. for the Respondent

Facts of the Case

The petitioner, a registered assessee under GST, was subjected to a formal enquiry at its premises, pursuant to which a show cause notice for cancellation of registration was issued. The registration was cancelled and the assessee’s application for revocation of cancellation was subsequently rejected by the jurisdictional officer. Aggrieved, the assessee preferred an appeal under Section 107 of the CGST Act and the Uttar Pradesh GST Act. The Appellate Authority allowed the appeal but made it subject to verification of facts by the Adjudicating Authority, thereby effectively remanding the matter. The assessee challenged the order to the extent that it remanded the matter back, and the matter was accordingly placed before the High Court.

High Court Held

The High Court held that once the Appellate Authority reached the conclusion that the cancellation order could not be sustained, it was not justified in issuing directions that effectively granted a second inning to the Department. It was held that the Appellate Authority, while exercising powers under Section 107, did not have authority to remand the matter back to the Adjudicating Authority. Consequently, the impugned order was set aside to the extent that it directed remand, while clarifying that the Department was at liberty to act in accordance with law for initiating any fresh course of action.

List of Cases Referred to

• P.N.C. Construction Company Limited v. State of U.P. 2002 taxmann.com 2436 (Allahabad) (para 4).