Shyam Traders & Ors. Vs State of West Bengal & Ors. (Calcutta High Court)
Calcutta High Court holds GST Appellate Authority cannot remand matter under Section 107(11)
The Calcutta High Court has held that the Appellate Authority under Section 107 of the CGST/WBGST Acts cannot remand a matter to the Adjudicating Authority, since Section 107(11) expressly prohibits sending the case back to the authority whose order is under challenge.
In M/s. Shyam Traders & Ors. v. The State of West Bengal & Ors. (WPA 2357 of 2025), the petitioners questioned the appellate order dated 20 May 2024 to the extent it directed them to appear before the Adjudicating Authority with supporting documents for allowing admissible input tax credit and settling the dispute. According to the petitioners, that direction was, in substance, a remand, though the statute does not permit such a course.
The dispute arose from an ex parte Order-in-Original dated 11 September 2023 passed under Section 73(9), by which tax, interest and penalty aggregating to Rs. 18,19,565.91 were confirmed for FY 2017-18. The demand was mainly on account of alleged short payment of tax on outward supplies and alleged excess availment of input tax credit.
The petitioners had also moved an application under Section 161 for rectification of the appellate order, contending that the remand direction was an error apparent on the face of the record. That application came to be rejected on 16 September 2025 only on the ground of limitation, as it had been filed beyond the prescribed period.
