2019 (6) TMI 179 - HC - VAT and Sales Tax

Alternative statutory remedy of appeal - Punjab Value Added Tax Act, 2005 - HELD THAT - The disputed questions of fact have been sought to be raised in the writ petition. Further, the petitioner has an alternative efficacious remedy of appeal against the impugned order(s). The Apex Court in COMMISSIONER OF INCOME TAX OTHERS VERSUS CHHABIL DASS AGARWAL 2013 (8) TMI 458 - SUPREME COURT , elaborately considered the question of entertaining writ petition where alternative statutory remedy was available. Keeping in view the availability of alternative remedy of appeal against the impugned order and the law laid down by the Apex Court on the issue, there are no ground to interfere in exercise of writ jurisdiction under Articles 226/227 of the Constitution of India - petition disposed off.

Summary

Issues:
Quashing of order under Punjab Value Added Tax Act, 2005 and direction for interest levy as per Central Sales Tax Act, 1956 and 2005 Act for Assessment Year 2010-11.

Analysis:
The petitioner approached the High Court under Article 226 seeking to quash an order passed by respondent No.3 under the Punjab Value Added Tax Act, 2005, and requested direction for interest levy as per the Central Sales Tax Act, 1956, and the 2005 Act for the Assessment Year 2010-11. The Court noted that the petitioner raised disputed questions of fact and had an alternative efficacious remedy of appeal against the impugned order(s). Referring to Commissioner of Income Tax v. Chhabil Dass Agarwal, the Court emphasized the rule that the High Court should not interfere when an adequate efficacious alternative remedy is available unless an exceptional case warranting interference exists. The Court cited various cases to support this principle, highlighting that the High Court should not entertain a petition under Article 226 if an effective alternative remedy is available. The Court also mentioned that the statutory forum should not be bypassed, and a writ petition should not be entertained ignoring the statutory dispensation.

In another case, Larsen and Toubro Limited v. The State of Haryana, the Court outlined the circumstances under which a writ petition can be entertained without insisting on adopting statutory remedies, including the enforcement of fundamental rights, failure of principles of natural justice, or challenging the jurisdiction or vires of an Act. However, in the present case, due to the availability of an alternative remedy of appeal against the impugned order and in line with the law laid down by the Apex Court, the High Court found no grounds to interfere using writ jurisdiction under Articles 226/227 of the Constitution of India. Therefore, the Court disposed of the writ petition, directing the petitioner to pursue the statutory remedy as per the law.

This detailed analysis of the judgment highlights the legal principles governing the interference by the High Court when alternative statutory remedies are available, emphasizing the importance of exhausting such remedies before seeking relief through writ jurisdiction.