2024 (11) TMI 1438 - HC - Service Tax

Challenge to orders of assessment - HELD THAT - No grounds have been made as indicated in the order of the Hon ble Apex Court in Assistant Commissioner of State Tax and others vs. Commercial Steel Limited 2021 (9) TMI 480 - SUPREME COURT where it was held that There was in fact no violation of the principles of natural justice since a notice was served on the person in charge of the conveyance. In this backdrop it was not appropriate for the High Court to entertain a writ petition. The assessment of facts would have to be carried out by the appellate authority. As a matter of fact the High Court has while doing this exercise proceeded on the basis of surmises. Wwith liberty to the petitioner to approach the appellate authority by filing an appeal as provided under Section 107 of the Central Goods and Services Tax Act 2017 these Writ Petitions are disposed of.

Summary

In the case before the Madras High Court, presided over by Justice K. Kumaresh Babu, the petitioner challenged the orders of assessment through writ petitions. The court referenced the Supreme Court's decision in "Assistant Commissioner of State Tax and others vs. Commercial Steel Limited," 2021 SCC OnLine SC 884, which emphasized that while the existence of an alternative remedy does not absolutely bar a writ petition under Article 226, such petitions are only entertained under exceptional circumstances, including breaches of fundamental rights, violations of natural justice, excess of jurisdiction, or challenges to the vires of statutes.In this case, none of these exceptions were established as there was no violation of natural justice, given that notice was duly served. The Supreme Court had previously set aside a similar High Court order, instructing the respondent to pursue alternate statutory remedies under Section 107 of the CGST Act.The Madras High Court concluded that the petitioner's arguments on the merits did not satisfy the criteria for exceptional circumstances. Therefore, the court disposed of the writ petitions, granting the petitioner liberty to appeal under Section 107 of the Central Goods and Services Tax Act, 2017, without any order as to costs, and closed the connected miscellaneous petitions.