2022 (7) TMI 1060 - HC - VAT and Sales Tax

Validity of assessment orders - Seeking writ of mandamus staying revenue recovery proceedings or any other steps against the appellant - violation of the provisions contained in Section 25AA of the KVAT Act or not - violation of principles of natural justice - HELD THAT - The learned Single Judge on finding that the points raised are clear disputed facts and even if the question whether the mandate under Section 25AA of the KVAT Act has been followed by the Assessing Officer, the appellant has got an appellate remedy and so entertaining the said issue in the Writ Petition, is not warranted - It is now settled law that a jurisdictional error or violation of principles of natural justice resulting in travesty of justice are the principal grounds for the invocation of remedy under Article 226 of the Constitution of India. There is no ground to interfere with the judgment of the learned Single Judge - appeal dismissed.

Summary

Issues:
1. Challenge to assessment orders under Kerala Value Added Tax Act, 2003.
2. Jurisdictional error, statutory mandate, arbitrariness, violation of natural justice.
3. Availability of alternative remedy before the Appellate Authority.
4. Invocation of Article 226 of the Constitution of India for remedy.

Analysis:

1. The appellant, a partnership firm executing works contracts, filed a Writ Petition challenging assessment orders for the years 2015-16 and 2016-17 under the Kerala Value Added Tax Act, 2003. The Assessing Officer had accepted the filed returns but later issued notices proposing assessment of escaped turnover, leading to the contested assessment orders (Ext.Nos.P3 and P3(a)). The appellant contended jurisdictional error, lack of statutory mandate, arbitrariness, and violation of natural justice in the assessment process.

2. The learned Single Judge dismissed the Writ Petition, emphasizing the availability of a remedy before the Appellate Authority for disputed factual issues raised by the appellant. The appellant's counsel argued that the assessment orders were passed arbitrarily and in violation of Section 25AA of the KVAT Act, justifying the invocation of Article 226 of the Constitution of India for relief.

3. However, the High Court concurred with the Single Judge's decision, noting that jurisdictional errors or violations of natural justice warranting Article 226 remedy were not established. The Court highlighted that the appellant had an efficacious alternative remedy through an appeal under the statute, emphasizing that such grounds are principal for invoking constitutional remedies. Consequently, the Court found no basis to interfere with the Single Judge's judgment and dismissed the Writ Appeal.

In conclusion, the High Court upheld the dismissal of the Writ Petition, emphasizing the availability of statutory remedies for disputed factual issues related to the assessment orders under the Kerala Value Added Tax Act, 2003. The Court reiterated that jurisdictional errors or violations of natural justice must be established for invoking constitutional remedies under Article 226 of the Constitution of India, and in this case, the appellant had an alternative remedy through an appeal, leading to the dismissal of the Writ Appeal.