2021 (2) TMI 192 - HC - GST

Classification of services - demand under works contract relating to immovable property - validity and legal sustainability of the said order - violation of principles of natural justice - HELD THAT - The present impugned order is assailable before the appellate authority. It is submitted by the learned Government Pleader for Commercial Tax that the Joint Commissioner is the appellate authority constituted under the above said provision of law. In view of the above provision of law, this court is not inclined to entertain the present writ petition under Article 226 of the Constitution of India and this court also does not propose to express any opinion on the merits of the matter as this court is relegating the petitioner to an alternative remedy of appeal. It is also submitted by the learned Government Pleader that according to Sub-section (1) of Section 107 of the Act, the appeal needs to be filed within three (3) months from the date of the order. The writ petition is disposed of, at the stage of admission, leaving it open for the petitioner herein to avail the statutory remedy of appeal under Section 107 of the Act.

Summary

Issues:
Challenge to order passed by Assistant Commissioner regarding tax, penalty, and interest payment under the Act.

Analysis:
The petitioner, a registered dealer under the APVAT Act, challenged the order passed by the Assistant Commissioner, demanding payment of a significant amount within 30 days. The petitioner contended that the order was erroneous, lacked jurisdiction, violated natural justice principles, and misinterpreted transactions as 'works contract.' The petitioner argued that the transactions were composite supplies of goods and services taxable at specific rates, accusing the respondent of levying higher taxes without proper verification.

The Government Pleader for Commercial Tax argued that the writ petition was not maintainable under Article 226 of the Constitution as statutory appeal options existed. The Pleader highlighted that factual controversies required examination beyond the scope of Article 226. Referring to Section 107 of the Act, the Pleader emphasized the availability of the remedy of appeal to the appellate authority within a specified timeframe. The Pleader stressed that the appeal needed to be filed within three months from the date of the order.

The judgment emphasized the provisions of Section 107 of the Act, outlining the process of appeals to the Appellate Authority. The Court noted that the impugned order could be challenged before the appellate authority, with the Joint Commissioner serving as the appellate authority as per the law. The Court declined to entertain the writ petition under Article 226, directing the petitioner to pursue the statutory remedy of appeal within the specified timeframe. The Court ordered that no coercive action be taken by the respondents until the expiry of the appeal filing period. The judgment disposed of the writ petition, leaving room for the petitioner to avail the statutory remedy of appeal under Section 107 of the Act, with no costs imposed.

This comprehensive analysis covers the issues raised in the judgment, the arguments presented by both parties, the legal provisions cited, and the final decision rendered by the Court.