2022 (7) TMI 1057 - HC - GST

Maintainability of petition - availability of alternative remedy of appeal - Validity of assessment order - non-filing of returns - Section 62(1) of the GST Act - HELD THAT - Insofar as the provision made under Section 62 of the Act, under which, as has been rightly pointed out by the learned counsel appearing for the petitioner, since he has not chosen to file the return within 30 days from the date of the orders which are impugned herein, the chance of getting a deemed withdrawal of the assessment orders are lost and therefore, the chance of the petitioner to get remedy under Section 62(2) was closed and therefore, the further appeal alone is the only remedy for the petitioner - When there is an appeal remedy available under Section 107, it is the settled proposition that, writ petition cannot be filed by invoking the extraordinary jurisdiction of this Court as that would be possible in three circumstances viz., violation of principles of natural justice, violation of statutory provisions or for want of jurisdiction of the authority who passes the impugned order. The reason being that, the impugned orders invariably in all these cases were dated 10.01.2020, the three months limitation and one month condonable period to file an appeal ends only some time in April 2020, by that time the Covid-19 pandemic first wave situation started and there was a complete lock down of the entire Country from the third week of March 2020 and taking that grim situation, the Hon'ble Supreme Court also in the suo motu writ petition has extended the limitation period upto May 2022. The recovery proceedings for the balance amount, for which, if at all the Bank accounts of the petitioner are attached, the same can also be directed to be lifted by way of interim order, hence that can very well be considered objectively by the Appellate Authority if such an application is made by the petitioner. The impugned orders cannot be successfully challenged before this Court on the ground of non-exhausting the alternative, efficacious appellate remedy which is available to the petitioner under Section 107 of the GST Act, hence, these writ petitions are rejected with the liberty to the petitioner by relegating the petitioner to go before the Appellate Authority to file appeals - Petition disposed off.

Summary

Issues:
Challenge to impugned orders of assessment under Section 62(1) of the GST Act, missed opportunity to file return within 30 days, appeal under Section 107, Bank accounts attachment, extraordinary jurisdiction of High Court under Article 226, compliance with Section 107(6) for appeal, lifting of Bank attachment order, Covid-19 situation affecting appeal filing, alternative appellate remedy under Section 107.

Analysis:
1. Impugned Orders of Assessment: The writ petitions challenged the assessment orders dated 10.01.2020 made under Section 62(1) of the GST Act. The petitioner failed to file the return within 30 days as provided under Section 62(2), resulting in the orders becoming final. The remedy under Section 62(2) for deemed withdrawal was lost due to the delay in filing the return.

2. Availability of Appeal under Section 107: The respondent contended that the petitioner could file an appeal under Section 107, complying with the pre-deposit conditions. The Court emphasized that when an appeal remedy is available under Section 107, the extraordinary jurisdiction of the High Court under Article 226 cannot be invoked unless there is a violation of natural justice, statutory provisions, or lack of jurisdiction.

3. Bank Accounts Attachment: The petitioner's bank accounts were attached pursuant to the impugned orders, affecting the business operations. The petitioner sought the lifting of the bank attachment order as an interim relief to comply with the provisions of Section 107 for filing an appeal before the Appellate Authority.

4. Covid-19 Situation and Appeal Filing: Due to the Covid-19 pandemic and lockdown, the petitioner faced challenges in approaching the Appellate Authority within the stipulated time. The Court acknowledged the pandemic situation and extended the time for filing appeals, emphasizing compliance with Section 107(6) for appeal consideration.

5. Court's Orders: The Court rejected the writ petitions, directing the petitioner to file appeals before the Appellate Authority within two weeks, complying with Section 107(6). The Court allowed the petitioner to seek relief under Section 107(7) for lifting the bank attachment order, considering the pandemic's impact on appeal filing. The orders were issued in light of the exceptional circumstances due to the pandemic, emphasizing the importance of compliance with statutory provisions for appeal consideration.