In M/S Anand And Anand (Law Firm) v. The Principal Commissioner Central Goods & Services Tax And 2 Others, the Allahabad High Court considered whether the GST Appellate Authority could remand refund proceedings to the original adjudicating authority for fresh determination. The Court held that such a course is expressly prohibited by Section 107(11) of the Central Goods and Services Tax Act, 2017.
Background of the Case
The petitioner, a law firm registered under GST at Noida, rendered legal services to domestic as well as foreign clients. According to the petitioner, consideration for services rendered to foreign clients was received in convertible foreign exchange and the petitioner claimed the benefit available in respect of export of services.
For the period from March 2021 to August 2021, the petitioner filed separate refund applications under Section 54 of the CGST Act in Form GST RFD-01, seeking refund of accumulated Input Tax Credit on export of services without payment of tax. The applications were accompanied by details of ITC, remittance certificates, FIRC copies and other supporting documents.
The refund claims were subsequently rejected through separate Orders-in-Original Nos. 494 to 499 dated 31 October 2023. The petitioner challenged those orders before the Joint Commissioner, CGST (Appeals), Noida.
Appellate Authority Remanded the Refund Matter
While considering the appeals, the Appellate Authority recorded findings in favour of the petitioner regarding fulfilment of the condition relating to export of services. However, it remanded the matter to the adjudicating authority for redetermination of the place of supply and for examining whether the services qualified as export of services after scrutiny of the relevant documents.
The petitioner challenged the remand directions before the Allahabad High Court principally on the ground that the GST Appellate Authority possesses no statutory power to send the matter back to the original authority.
Section 107(11) Expressly Prohibits Remand
The High Court examined Section 107(11) of the CGST Act, which empowers the Appellate Authority, after making such further inquiry as may be necessary, to pass an order confirming, modifying or annulling the decision or order appealed against.
Significantly, the provision expressly states that the Appellate Authority “shall not refer the case back to the adjudicating authority” that passed the original decision or order.
The Court relied upon its earlier decision involving the same petitioner and also referred to Kronos Solutions India (P.) Ltd. v. Union of India, where it had been held that once the statute provides only three alternatives—confirmation, modification or annulment—the Appellate Authority cannot exercise any supposed inherent power to set aside an order and remand the proceedings to the original authority.
Revenue Also Accepted Absence of Remand Power
During the hearing, the Revenue initially contended that, since the GST Tribunal had become operational, the petitioner should be relegated to the statutory appellate remedy.
However, when specifically asked whether the Appellate Authority had any statutory power to remand the matter, the Revenue answered in the negative. In these circumstances, the High Court declined to require the petitioner to approach the GST Tribunal.
High Court Sets Aside Remand Directions
The High Court set aside the portions of the appellate orders dated 30 April 2024, 28 June 2024 and 31 May 2024 by which the matters had been remitted to the adjudicating authority.
The Joint Commissioner, CGST (Appeals), Noida was directed to decide the appeals in accordance with law within two months. All four writ petitions were accordingly disposed of.
Key Legal Principle
The decision reiterates an important limitation on the powers of the GST First Appellate Authority. Under Section 107(11) of the CGST Act, the authority must itself adjudicate the appeal and may confirm, modify or annul the order under challenge. It cannot remit the case to the original adjudicating authority for fresh adjudication.
The ruling is particularly relevant in GST refund and adjudication disputes where appellate authorities seek to return matters to the original authority instead of deciding the controversy themselves.
Case Details
Case: M/S Anand And Anand (Law Firm) v. The Principal Commissioner Central Goods & Services Tax And 2 Others
Court: High Court of Judicature at Allahabad
Bench: Hon’ble Vikas Budhwar, J.
Leading Case: Writ Tax No. 852 of 2026
Connected Cases: Writ Tax Nos. 859, 861 and 860 of 2026
Decision Date: 16 February 2026
Provision Involved: Section 107(11), Central Goods and Services Tax Act, 2017
Result: Remand portions of the appellate orders set aside; Appellate Authority directed to decide the appeals in accordance with law within two months.
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