2022 (10) TMI 914 - HC - GST

Maintainability of petition - availability of alternative remedy of appeal - Violation of principles of natural justice - validity of assessment order - validity of Section 4 of the IGST Act read with Section 5 of the Central Goods and Services Tax Act, 2017 - Circular No.31/05/2018-GST, dated 09.02.2018 - HELD THAT - Without going into merits of the matter, this Court, in the interests of justice, felt it appropriate to dispose of the writ petition giving liberty to the petitioner to approach the appellate authority provided under Section 107 of the CGST Act. It is left open to the petitioner to raise all the grounds raised in the writ petition before the appellate authority. The Writ Petition is accordingly disposed of.

Summary

Issues: Challenging assessment order under IGST Act and CGST Act, violation of natural justice, availability of alternative remedy of appeal under Section 107 of CGST Act.

Challenging Assessment Order:
The petitioner challenged the assessment order passed by the 1st respondent, citing it as illegal, arbitrary, without jurisdiction, and contrary to the provisions of Section 4 of the IGST Act and Section 5 of the Central Goods and Services Tax Act, 2017. The petitioner contended that the order was against the principles of natural justice as it was passed without providing an opportunity to submit objections to the show cause notice. The counsel for the petitioner highlighted the relevant provisions of the IGST Act and CGST Act, along with the supporting documents filed with the writ petition, to support the contention of lack of jurisdiction in passing the impugned order.

Violation of Natural Justice:
The petitioner argued that the assessment order was a violation of the principles of natural justice due to the absence of an opportunity to respond to the show cause notice. The petitioner's counsel emphasized that the failure to allow the petitioner to submit objections before the issuance of the order was a fundamental breach of natural justice. This contention was a significant aspect of the challenge against the assessment order.

Availability of Alternative Remedy of Appeal:
The Government Pleader and standing counsel for the respondents pointed out that an effective alternative remedy of appeal was available under Section 107 of the CGST Act against the impugned order. They highlighted that the petitioner could have approached the appellate authority to address the issues raised in the writ petition. The counsel for the respondents argued that the petitioner's decision to bypass the appeal process and directly seek relief from the Court was an attempt to avoid the statutory deposit required for filing an appeal. The Court acknowledged the availability of the appeal remedy and directed the petitioner to pursue the appropriate appellate authority under Section 107 of the CGST Act.

Judgment:
Considering the submissions made by the Government Pleader and standing counsel, the Court, in the interest of justice, disposed of the writ petition. The Court granted the petitioner the liberty to approach the appellate authority provided under Section 107 of the CGST Act. The petitioner was allowed to raise all the grounds presented in the writ petition before the appellate authority. The Court concluded the judgment by disposing of the writ petition without any order as to costs, and directed the closure of any pending miscellaneous applications.