In a recent case, the High Court of Kerala remanded the matter as it was found that the appellate authority failed to consider the issue of the tax effect on account of the discount granted under the Central Goods and Service Tax (CGST) Act, 2017.
Counsel appearing for the petitioner, Deepu Prasad Kin submitted that there is no tax effect on account of the discount granted and that the matter has not been considered properly by the Appellate Authority or by the Assessing Authority and he will be satisfied if the matter is remanded to the appellate Authority for fresh consideration.
The Government Pleader attempted to establish that the remedy of the petitioner against the appellate order is to file a second appeal under Section 112 of the CGST/SGST Acts.
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Considering the limited nature of relief now sought by the petitioner, that single bench of Justice Gopinath P viewed that the matter can be remanded to the Appellate Authority for fresh consideration as it does not appear from the original order or the appellate order (in both cases) that this issue has been considered in a proper perspective.
It was evident that the fact that the grant of discount has no tax effect has not been considered and the fact that the supplier/or the petitioner has not sought any refund of tax has also not been considered.
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The court quashed the orders and restored them to the file of the First Appellate Authority, who shall pass fresh orders, after affording an opportunity of hearing to the petitioners. It was held that orders are set aside only to the extent that they consider the issue related to the discount received by the petitioners and on no other issues.
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