Kai International Private Ltd Vs Commissioner of CT & GST (Orissa High Court)
Writ Petition Rejected Because Classification of Iron Ore Exports Requires Factual Adjudication; High Court Declines GST Relief Because Alternative Remedy Before Tribunal Was Not Exhausted; GST Classification Dispute on Iron Ore Exports Sent to Statutory Forum Because Facts Were Involved; Orissa High Court Refuses to Examine GST Classification Because Tribunal Remedy Exists.
In this case, the petitioner, a supplier of goods and services, was subjected to audit proceedings under Section 65 of the GST Act. Following submission of the audit report, proceedings under Section 73 were initiated, resulting in an order dated 27.08.2024 raising demand of tax, interest, and penalty after the adjudicating authority found the petitioner’s reply unsatisfactory.
The petitioner challenged the adjudication order before the appellate authority under Section 107 of the GST Act. By order dated 10.04.2025, the Additional Commissioner of State Tax (Appeal), Rourkela modified the adjudication order and reduced the demand to Rs.55,62,048/-.
Still aggrieved, the petitioner filed a writ petition before the Orissa High Court contending that the appellate authority failed to correctly appreciate the classification of the transaction. The petitioner argued that export of iron ore fines having Fe content above 57% constituted purely “supply of goods” and could not be treated as “composite supply of goods and services”.
