03/01/2024
"How to Handle First Appeal in GST" - Part-2
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"Aggrieved Person"
Any person "aggrieved" against any "decision" or "order" passed by the "adjudicating authority".
Let's dive deep and understand this word.
Where petitioner filed an appeal against the order confirming demand for tax and penalty, but authorities refused to take the appeal on record stating that payment was made by owner of goods, it was held that petitioner was entitled
to file an appeal as the petitioner was an aggrieved person. Bombay High Court in Stanship Logistics Pvt. Ltd. vs Deputy Commissioner of State Tax (Appeal) [Writ Petition No. 6744 of 2021; 11-Sep-2023]
For purpose of preferring an appeal under section 107, assessee being consignor of goods, could be considered as person aggrieved when order was passed against person in charge of conveyance. Calcutta High Court in Som Global Pan Masala Pvt. Ltd. vs Deputy Commissioner of
Revenue, Bureau of Investigation [W.P.A. No. 328 of 2023; 13-Jul-2023]
The Petitioner, being a consignee, can be considered as the person aggrieved when order is passed against person in charge of conveyance for purpose of preferring an appeal under Section 107 of CGST Act, 2017. Calcutta High Court in Mehndihasan Rahemtulla Hariyani vs
Deputy Commissioner of Investigation (North Bengal) [W.P.A. No. 927 of 2022; 03-Nov-2023]
Issue related to Third Party:
Appeal to Appellate Tribunal - Intervener in appeal - Aggrieved person - Intervener in appeal not permitted under CESTAT (Procedure) Rules, 1982 and Central Excise Law
Aggrieved person U/s 86 of Finance Act,1994 would be person who has been saddled with liability under impugned order - Applicant cannot be treated as aggrieved party merely on the ground that assessee raised a demand on them relating to demand of tax arising out of impugned order
CESTAT - Chennai in Karaikal Port Pvt. Ltd. vs Commissioner of Central Excise, Puducherry [Misc. Order No. 41839/2014, dated 22-Jul-2014 in Application No. ST/Misc./42263/2013 in Appeal No. ST/41794/2013]
When is a third party considered to be the person aggrieved?
Appeal before the Delhi VAT Tribunal U/s 76 of DVAT Act can be filed by a person affected by the order of the Commissioner U/s 84 (i.e. Determination of Question) in the case of third party. Let’s illustrate:
The Commissioner determines the matter U/s 84 in the case of M/s ABC; the appeal can also be filed by M/s XYZ if he is aggrieved from the said Commissioner’s order. By going through provisions of Sec 74(1) and 84(8),
the DVAT Tribunal held that determination orders are binding not only on the applicant but also to other dealers and the subordinate officers, thus, are right in rem. Thus, the third party can also be considered as person aggrieved.
Therefore, the only remedy available to other dealers is to file appeal before the Tribunal, who have the locus standi to challenge the determination order before the Tribunal.
C.L. Micromed vs. CIT, 2015 (1487/ATVAT/2012-13 dated 18.02.2015) Tri.-Delhi
[This third party appeal Delhi VAT Tribunal Order was part of my book "Litigations, Pleading and Proceedings in GST! (Jan'2019)]
I hope that you would have liked today's discussion.
Tomorrow we will discuss in deep other important topic.