Bajaj Wheels Private Limited & anr. Vs Union of India & ors. (Calcutta High Court)
The Calcutta High Court, in the case of Bajaj Wheels Private Limited & anr. Vs Union of India & ors., revisited its prior order dated June 13, 2025, to provide clarification and allow for reargument, subsequently recalling the unsigned order. The court addressed an urgent application (CAN 1 of 2025) for an expedited hearing of the writ petition, which was granted. The core of the matter, WPA 495 of 2024, challenged an Appellate Authority’s order from December 18, 2024. This appellate order had allowed an appeal filed by the tax department against a previous decision dated October 30, 2023, which had dropped proceedings initiated by a show-cause-cum-demand notice against Bajaj Wheels. Bajaj Wheels contended that it did not receive adequate notice or service of the appeal petition before the Appellate Authority.
The High Court observed that while the Appellate Authority “allowed” the appeal, it was not explicitly clear if the original order of the adjudicating authority had been set aside. The Appellate Authority’s reasoning primarily focused on the adjudicating authority’s failure to examine the legality of Input Tax Credit (ITC) availed by Bajaj Wheels and its failure to pass a speaking order. However, the High Court noted that the Appellate Authority did not undertake further necessary inquiry as required by law. Consequently, the High Court set aside both the Appellate Authority’s order and the original adjudicating authority’s order dated October 30, 2023. The case has been remanded back to the adjudicating authority for a fresh decision on merits. The court clarified that it has not delved into the merits of the case itself, leaving it open for all parties to present their arguments before the adjudicating authority, who is directed to decide the matter within eight weeks, affording proper notice and an opportunity for hearing to Bajaj Wheels.
