In Writ Petition No. 103652 of 2023 -KAR HC- Karnataka High Court quashes Endorsement denying admission to M/s Tejas Arecanut Traders’ appeal, grants opportunity for compliance; Orders stay on disposal of confiscated goods
Justice S. Vishwajith Shetty [14-06-2023]

Read Order: M/s Tejas Arecanut Traders V. Joint Commissioner of Commercial Taxes and Others

Chahat Varma

New Delhi, June 26, 2023: The Karnataka High Court's Dharwad bench has quashed the endorsement issued by the Appellate Authority (first respondent), which denied admission to M/s Tejas Arecanut Traders’ (petitioner) appeal. The court disposed of the writ petition by providing the petitioner with an opportunity to comply with the requirements of the endorsement within a specified timeframe. The court also clarified that until the first respondent complies with the conditions specified in the order, no action should be taken by the respondents to dispose of the confiscated goods.

In the present case, the counsel representing the petitioner requested the court to provide an opportunity for compliance with the endorsement issued on 28.03.2023. The counsel explained that the endorsement was sent via email, which led to it going unnoticed and the petitioner only became aware of the endorsement after the auction notice was published. On the other hand, the Additional Advocate General, argued that despite the petitioner filing an appeal under Section 107 of the Central Goods and Services Act (CGST Act), they failed to make the mandatory pre-deposit or provide any explanation for the non-payment. As a result, their appeal was rejected, and the authorities proceeded with the auction of the perishable goods.

The court ordered that if the petitioner chooses to pay the required pre-deposit as per the endorsement, the first respondent Appellate Authority must consider the petitioner's statutory appeal filed under Section 107 of the CGST Act and dispose of it on its merits in accordance with the law as expeditiously as possible.