Case Law Details
Team Computers Private Limited Vs Union of India & Ors. (Supreme Court of India)
Supreme Court of India addressed the case of Team Computers Private Limited Vs Union of India & Ors., highlighting concerns over the non-functional state of the Goods and Services Tax Appellate Tribunal (GSTAT). The petitioner approached the High Court to challenge a departmental order demanding repayment of a previously refunded amount. However, the High Court dismissed the writ petition, citing an alternative appellate remedy under Section 112 of the Central Goods and Services Act, 2017 (CGST Act). The petitioner contended that the appellate tribunal, a crucial mechanism under the CGST Act, is yet to become operational, thereby rendering the prescribed remedy ineffective.
During the proceedings, the Supreme Court acknowledged the petitioner’s predicament and questioned the government on the delay in operationalizing the GSTAT. The Court directed the submission of a detailed report within three weeks explaining the reasons for the tribunal’s non-functionality. Pending further updates, the Court stayed the department’s recovery order against the petitioner.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. Application seeking exemption from filing certified copy of the impugned order is allowed.
2. We have heard Mr. Kavin Gulati, the learned Senior counsel appearing for the petitioner and Mr. Rupesh Kumar, the learned Senior counsel appearing for the respondents.
3. It appears that the High Court declined to entertain the Writ Petition filed by the petitioner – herein on the ground that the petitioner has an efficacious remedy of an appeal under Section 112 of the Central Goods and Services Act, 2017 before the Goods and Services Tax Appellate Tribunal.
4. However, the fact is that the Goods and Services Tax Appellate Tribunal has not been made functional till this date.
5. When this matter was being heard, Mr. Rupesh Kumar, the learned Senior counsel appearing for the department assisted us by submitting that it is true that the Goods and Services Tax Appellate Tribunal is not functional but if the assessee wants to file an appeal, he can file it with a pre-deposit of 10% of the tax liability demanded by the authority.
6. We would like to first know at the earliest why the Goods and Services Tax Appellate Tribunal has not been made functional till this date.
7. We want a report in the aforesaid regard by the next date of hearing.
8. Issue notice, returnable in three weeks.
9. Rupesh Kumar, the learned Senior counsel waives service of notice for and on behalf of the respondents.
10. It appears that a writ petition had to be filed before the High Court as the Department wants to claim back the amount which was already refunded to the assessee.
11. In such circumstances, the order passed by the Department asking the assessee to pay back the already refunded amount shall remain stayed from its operation.
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