Limited Remanding Power of Authority u/s 107(11) on Procedural Lapse Cases: SC says ‘Let HC Deal with this’ [Read Order]
The Supreme Court held that since Section 107(11) of the CGST Act does not permit remand, the petitioner can approach the High Court to address procedural lapses in assessment.
![Limited Remanding Power of Authority u/s 107(11) on Procedural Lapse Cases: SC says ‘Let HC Deal with this’ [Read Order]](https://images.taxscan.in/h-upload/2025/08/02/2072368-sc-on-gst-remand-taxscan.webp "Limited Remanding Power of Authority u/s 107(11) on Procedural Lapse Cases: SC says ‘Let HC Deal with this’ [Read Order]")
The Supreme Court of India recently addressed the legal question of whether an appellate authority under Section 107(11) of the Central Goods and Services Tax ( CGST ) Act is empowered to remand a case back to the assessing officer. The issue arose after Bimla Pulp and Papers Pvt. Ltd. challenged an assessment order before the Allahabad High Court, alleging that the...
The Supreme Court of India recently addressed the legal question of whether an appellate authority under Section 107(11) of the Central Goods and Services Tax ( CGST ) Act is empowered to remand a case back to the assessing officer.
The issue arose after Bimla Pulp and Papers Pvt. Ltd. challenged an assessment order before the Allahabad High Court, alleging that the proceedings were procedurally flawed. Specifically, the company argued that it had been denied the opportunity to cross-examine witnesses whose statements formed the basis of the tax demand.
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In response, the High Court suggested that the petitioner avail the statutory remedy of appeal under Section 107 of the CGST Act. On that basis, and with the petitioner’s consent, the High Court allowed withdrawal of the writ petition on March 20, 2025, and permitted the petitioner to file a statutory appeal within three weeks.
The High Court also directed the appellate authority to entertain the appeal without raising objections regarding limitation and to decide it on the merits.
The petitioner later approached the Supreme Court through a Special Leave Petition, arguing that Section 107(11) of the CGST Act does not allow the appellate authority to remand a case to the assessing officer, even in cases involving procedural lapses.
The petitioner’s counsel submitted that the denial of cross-examination could not be remedied through the appellate route and the High Court should not have refused to exercise its writ jurisdiction. They argued that they were effectively left without any appropriate remedy.
The bench comprising Justices J.B. Pardiwala and R. Mahadevan acknowledged that the High Court order had been passed with the petitioner’s agreement but clarified that the issue raised was a genuine legal question.
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The court agreed that the appellate authority’s lack of power to remand under Section 107(11) could potentially make the appellate process ineffective in addressing procedural violations.
It was held that the petitioner is free to approach the High Court again to raise this concern and request an appropriate ruling. The Special Leave Petition was disposed of with liberty to the petitioner to revive the issue before the High Court.
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