The Calcutta High Court has set aside an appellate order passed by a State GST authority in a matter arising from an adjudication order issued by the Central GST authorities. 

The bench of Justice Smita Das De remanded the appeal to the competent appellate authority under the Central Goods and Services Tax Act, 2017, for fresh disposal.

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The central issue was whether an appellate authority under the West Bengal Goods and Services Tax Act could decide an appeal against an adjudication order passed by a proper officer under the CGST Act.

The company challenged the State appellate authority’s order dated February 12, 2025. It argued that where the original adjudication was undertaken by the Central GST authorities, the appeal must also be heard and decided by the Central appellate authority under the CGST Act.

The company relied on principles of jurisdictional propriety and consistency, submitting that the State appellate authority’s exercise of jurisdiction was contrary to the position recognised in earlier decisions of the High Court. It sought quashing of the appellate order and remand of the matter to the competent Central GST appellate authority.

Counsel appearing for the Central GST authorities, the Union of India and the State conceded the legal position advanced by the company. They did not oppose remand on the grounds of propriety and consistency.

The Court quashed the order dated February 12, 2025, and remanded the matter to the appellate authority under the CGST Act, 2017.

The Court directed the Central GST appellate authority to dispose of the appeal within eight weeks from the date of communication of its order. The authority must provide the company an opportunity of personal hearing and pass a reasoned, speaking order in accordance with law.

The decision must be communicated within one week thereafter. The Court also directed the company not to seek unnecessary adjournments during the appellate proceedings.

All points were left open for determination by the Central GST appellate authority, which must decide the matter without being influenced by observations in the High Court’s order. The ruling therefore resolves the question of the appropriate appellate forum while leaving the underlying dispute open for fresh consideration. 

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