Allahabad High Court Allows Anand And Anand Firm's Writ, Holds Favorable Findings Prevent Remand

The Allahabad High Court on 16 February held that once a finding is recorded in favour of a party, the appellate authority cannot remand the matter back to the original assessing authority to redetermine the issue.

A Single Judge Bench of Justice Vikas Budhwar allowed the writ petition filed by Anand and Anand Law Firm, holding:

“Apparently, the writ petitioners herein are questioning the appellate order dated 30.04.2024 passed by the Joint Commissioner, GST (Appeals) for various periods. Importantly, the appellate order dated 30.04.2024, deciding the appeals, notices and recites finding in favour of the writ petitioner regarding condition for export of services fulfilled by the writ petitioner. However, then too it remands the matter back to the adjudicating authority to redetermine the place of supply of services to qualify as whether the services of the petitioner and the export of services after examining the documents.”

The law firm, providing legal services to foreign and domestic clients, had filed refund applications under Section 54 of the CGST Act 2017 online on Form GST RFD-01 for the period from March 2021 to August 2021, separately for each month, seeking refund of Input Tax Credit (ITC) on export of services without payment of tax.

For certain periods, the refund was denied on the ground that the services were provided in India and not exported to foreign clients. Therefore, it appealed to the Joint Commissioner, CGST (Appeals), Noida.

The Commissioner recorded a finding in favour of the firm noting that the condition for export of services was fulfilled. However, the appellate authority remanded the case back to the assessing authority to determine whether the place of supply qualified for the refund.

The Court noted that in Anand & Anand (Law Firm) vs. Principal Commissioner of Central Goods and Services, relief had already been granted to the firm on the same issue. Following the principle in that case, the Court held that the appellate authority does not have the power to remand the case once a finding has been recorded in favour of the petitioner.

Accordingly, the High Court allowed the writ petition.