2022 (5) TMI 239 - HC - GST

Maintainability of petition - availability of statutory remedy of appeal under Section 107 of U.P. Goods and Service Tax Act, 2017 - petitioner had not responded - violation of principles of natural justice - HELD THAT - Without entering into the issue as to whether the show cause notice was served and the petitioner was given opportunity of hearing or not, the said ground being urged by the learned counsel for the petitioner before us in these proceedings can very well be taken up before the Appellate Authority by preferring appeal under Section 107 of U.P. Goods and Service Tax Act, 2017. This writ petition is disposed off with the liberty to the petitioner to file a statutory appeal under Section 107 of U.P. Goods and Service Tax Act, 2017 or to take recourse of any other legal remedy available to him - petition disposed off.

Summary

Issues:
- Whether the writ petition should be entertained when a statutory remedy of appeal is available under Section 107 of U.P. Goods and Service Tax Act, 2017?
- Whether the rule of exhaustion of alternative remedy is absolute?
- Whether the principles of natural justice were violated in the case?
- What is the appropriate course of action for the petitioner?

Analysis:
The High Court considered the issue of entertaining a writ petition when a statutory remedy of appeal under Section 107 of U.P. Goods and Service Tax Act, 2017 is available. The counsel for the respondents argued that the writ petition should not be entertained due to the availability of the statutory remedy of appeal. On the other hand, the petitioner's counsel contended that the rule of exhaustion of alternative remedy is not absolute, especially in cases where principles of natural justice have been violated. The respondents' counsel emphasized that in this case, the show cause notice was issued, but the petitioner did not respond. The Court did not delve into the specifics of whether the show cause notice was served and the petitioner was given an opportunity of hearing. However, the Court opined that the ground raised by the petitioner could be addressed before the Appellate Authority through an appeal under Section 107 of the Act.

The Court highlighted that the availability of a statutory alternative remedy does not preclude the possibility of entertaining a writ petition, especially in cases where principles of natural justice are violated. Nevertheless, in the present matter, the Court decided not to entertain the writ petition. The Court disposed of the petition but granted the petitioner the liberty to file a statutory appeal under Section 107 of U.P. Goods and Service Tax Act, 2017 or pursue any other legal remedy available. If the petitioner chooses to file a statutory appeal, the Court directed the Appellate Authority to decide on the matter promptly and on its merits. This judgment underscores the importance of exhausting statutory remedies while leaving room for exceptional circumstances where principles of natural justice are at stake.