K A Traders Vs Commissioner of CGST & CE (Ernakulam GSTAT)
The appeals were filed by the Revenue against a Rectification Order passed by the Joint Commissioner (Appeals), which had partially allowed the taxpayer’s appeal and remanded the balance demand to the original adjudicating authority for verification. The taxpayer, engaged in trading construction materials such as cement and steel and registered under GSTIN 32AAIFK0125G1ZX, had faced an audit for the period 2017 to 2022, followed by a show cause notice dated 16.06.2023 and adjudication resulting in OIO No. 09/2023-24-Central Tax (GVR) dated 11.12.2023. The taxpayer challenged the demand before the Joint Commissioner (Appeals), whose original appellate order dated 13.05.2024 rejected the appeals. A subsequent rectification application accompanied by further documents resulted in Rectification Order No. 11/2024-GST dated 13.12.2024. The rectification order dropped Rs. 1,18,889/- and directed verification of the remaining Rs. 4,23,345/- by the original adjudicating authority, with a direction to delete the demand if the documents and tax calculation were found correct.
The Revenue contended that the Joint Commissioner (Appeals) had no statutory power to remand the matter and was required to decide the appeal in accordance with Section 107(11) of the CGST/KGST Act, 2017. The Revenue also relied upon Rule 113(1) of the CGST Rules, 2017. The taxpayer defended the appellate order on the ground that relevant documentary evidence had already been furnished and also raised an objection concerning the monetary threshold prescribed by CBIC Circular dated 26.06.2024.
