2021 (9) TMI 873 - HC - GST

Maintainability of petition - instead of preferring an appeal, the petitioner has chosen to file the present writ petition - Section 31 of the Tamil Nadu Goods and Service Tax Act - HELD THAT - This Court is of the considered opinion that filing of an appeal is the rule. Entertaining a writ petition is only an exception. If the writ petition is filed on the ground that the authority who issued the order impugned is incompetent or having no jurisdiction under the provisions of the Act in a direct manner or when allegation of malafides are raised, then alone the writ petition needs to be entertained and in all other circumstances, the aggrieved person is bound to prefer an appeal as provided under the statute - Undoubtedly, writ proceedings may be entertained before exhausting the appellate remedy. However, it is to be ensured that there is an imminent threat or gross injustice warranting urgent relief to be granted. Mere violation of principles of natural justice is insufficient to entertain a writ proceedings under Article 226 of the Constitution of India, as every Writ Petition is filed based on one or the other ground stating that the principles of natural justice is violated or statutory requirements are not complied with or there is an illegality or otherwise. Thus, dispensing with an appellate remedy is to be granted cautiously in view of the fact that the very purpose and object of legislation providing an appellate remedy cannot be diluted nor the benefit be denied to the aggrieved person to exhaust the same. Based on the mere affidavits filed by the litigants, the disputed facts cannot be concluded. Thus, the importance of fact finding by the appellate forums is of more value for the purpose of providing complete justice to the parties approaching the Court of law - In the case on hand, the impugned orders were passed by the Assistant Commissioner. However, in respect of the Assistant Commissioner contemplated under Section 31 of the Act, a notification was issued by the Government redesignating the post of Assistant Commissioner as Deputy Assistant Commissioner, now the Appellate Deputy Commissioner is exercising the appellate power under Section 31 of the Act. Admittedly, the Appellate Deputy Commissioner is in the rank of Joint Commissioner of Commercial Taxes. Therefore, the petitioner is bound to prefer an appeal before the Appellate Deputy Commissioner under Section 31 of the Act - the petitioner is at liberty to prefer appeals against the orders impugned passed by the 1st respondent within a period of 30 days from the date of receipt of a copy of this order in the prescribed format and by complying with the provisions as contemplated under the Act. Petition disposed off.

Summary

Issues:
1. Whether filing a writ petition is the appropriate remedy instead of preferring an appeal under the Tamil Nadu Goods and Service Tax Act.
2. Jurisdiction and competence of the authority issuing the impugned order.
3. The power of judicial review by the High Court under Article 226 of the Constitution of India.

Analysis:
1. The petitioners, dealers in Health Care Products, were assessed to tax under the Tamil Nadu Goods and Service Tax Act for various assessment years. The orders passed by the Assistant Commissioner were challenged in a writ petition instead of opting for the statutory appeal process. The court emphasized that the appellate authority is the final fact-finding body competent to adjudicate mixed questions of fact and law. It was highlighted that the right of appeal provided under the statute should not be bypassed routinely, and filing an appeal should be the norm, with entertaining a writ petition being an exception.

2. The Court stressed that the filing of a writ petition should be based on specific grounds such as incompetence or lack of jurisdiction of the issuing authority or allegations of malfeasance. It was noted that while writ proceedings could be entertained before exhausting the appellate remedy, there must be a clear and urgent need for relief to be granted. Mere violations of natural justice were deemed insufficient to warrant bypassing the appellate process, as appellate authorities are crucial for fact-finding and providing valuable assistance for judicial review by the High Court.

3. The judgment highlighted the importance of the power of judicial review under Article 226 of the Constitution of India, emphasizing that it scrutinizes the decision-making process rather than the decision itself. The Court cautioned against routinely entertaining writ petitions without exhausting the appellate remedy, as it could undermine the institutional hierarchy and the expertise of appellate forums. It was emphasized that appellate authorities are final fact-finding bodies and play a crucial role in providing complete justice based on evidence and documents, which is essential for the High Court's judicial review.

4. The Court specifically addressed the issue of jurisdiction, noting that a notification redesignated the post of Assistant Commissioner to Deputy Assistant Commissioner, who now exercises the appellate power under the Act. It was clarified that the petitioner must prefer an appeal before the Appellate Deputy Commissioner, who holds the rank of Joint Commissioner of Commercial Taxes. The judgment allowed the petitioner to file appeals against the impugned orders within a specified period and directed the Appellate Deputy Commissioner to adjudicate the appeals on merits promptly.

In conclusion, the judgment emphasized the importance of following the statutory appeal process, highlighted the significance of appellate authorities in fact-finding, and clarified the jurisdictional aspect regarding the authority to whom appeals should be preferred under the Tamil Nadu Goods and Service Tax Act.