2020 (3) TMI 63 - HC - GST

Permission for withdrawal of application - Release of attached Bank Accounts - proviso to sub-sec.(1) to Sec.50 of the GST Act, 2017, inserted vide Finance (No.2) Act, 2019, whether clarificatory in nature or directory in nature? - HELD THAT - The petitioner prays for withdrawal of this writ petition to file an appeal before the appellate authority in accordance with law. He also prayed that the petitioner may be permitted to take all the pleas as have been raised in the present writ petition before the appellate authority. The writ petition is dismissed as withdrawn with the liberty to the petitioner to pursue the alternative remedy of appeal and to take all the pleas raised in this petition before the appellate authority in accordance with law.

Summary

Issues:
Petition under Article 226 of the Constitution of India seeking to quash an order, release of bank accounts, interpretation of proviso to Sec. 50 of the GST Act, and grant of appropriate relief.

Analysis:
The petitioner approached the High Court under Article 226 of the Constitution of India, seeking various reliefs, including quashing an order dated 25-5-2019, directing the release of specific bank accounts, and seeking a clarification on the nature of the proviso to sub-sec.(1) to Sec.50 of the GST Act, 2017. The State's counsel raised a preliminary objection, contending that the impugned order was appealable. The petitioner's counsel, in response, requested to withdraw the writ petition to file an appeal before the appellate authority while seeking permission to raise all the arguments presented in the writ petition before the appellate authority. The High Court, considering the submissions, dismissed the writ petition as withdrawn, granting the petitioner the liberty to pursue the alternative remedy of appeal and present all raised pleas before the appellate authority in accordance with the law.

This judgment highlights the importance of exhausting alternative remedies before approaching the High Court under Article 226 of the Constitution of India. The Court emphasized that when an order is appealable, the proper course of action is to seek redressal through the appellate process before resorting to writ jurisdiction. By allowing the withdrawal of the writ petition and granting the petitioner the opportunity to present all arguments before the appellate authority, the High Court ensured that the petitioner could avail themselves of the appropriate legal recourse without hindrance. This decision underscores the significance of following established legal procedures and hierarchy in seeking remedies, promoting a systematic and orderly approach to resolving legal disputes.