Nico Extrusion Limited Vs Union of India & Ors. (Bombay High Court)
The petitioner is a manufacturer. It was denied input tax credit under section 16(2)(b) of the CGST Act. A demand was confirmed. It filed an appeal before appellate authority. The appellate authority rejected the appeal on the ground that it cannot use ITC for making pre-deposit. Hence, writ came to be filed.
The Hon’ble Bombay High Court allowed the petition and set aside the order-in-appeal. It held: (i) if the appeal is defective for failure to deposit, no order on merits can be passed; (ii) no opportunity was granted to the petitioner to cure the defects; (iii) follows decision of the High Court in JEM Exporter and other decisions; (iv) remands matter back to appellate authority to grant opportunity to the petitioner to cure the defects; if any; and then decide the issue on merits.
The matter was argued by our Partner Bharat Raichandani for the petitioner assessee.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. Heard Mr. Raichandani (Thr. VC) along with Ms. Dhanistha Kawle, for the Petitioner and Mr. Ochani for the Respondent. The Petitioner challenges order dated 27 November 2024 by which the Appellate Authority dismiss the Petitioners’ Appeal on the ground of shortfall in pre-deposit amount.
