2024 (12) TMI 446 - HC - GST

Challenge to impugned order issued pursuant to the show cause notice - availability of alternate and efficacious remedy - petitioner states that the Petitioner has already filed an appeal since recovery proceedings were initiated - HELD THAT - The Petitioner should file a compliance report about the cost payment within four weeks from today. Petition dismissed.

Summary

Issues:
Challenge to impugned order, Exhaustion of alternate remedies, Misleading averments in the petition, Costs imposed on the petitioner, Disclosure of appeal filing during proceedings.

Analysis:
The judgment deals with a case where the Petitioner challenged an impugned order dated 1 August 2024 issued following a show cause notice dated 2 August 2022. The Court noted that despite the availability of an alternate and efficacious remedy to appeal to the Customs Excise & Service Tax Appellate Tribunal (CESTAT), the Petitioner falsely claimed in the petition that no other remedy was available. The Court found this claim misleading and emphasized the importance of exhausting alternate remedies before approaching the High Court directly. The Court highlighted the trend of making incorrect averments in petitions and declined to entertain the Petition due to the lack of reasonable cause.

The Petitioner's counsel argued that the show cause notice lacked a Document Identification Number (DIN No.), making it without jurisdiction. However, the Court dismissed this argument, stating that such a technicality does not justify bypassing the proper appellate process. The judgment referenced a previous case where the Court had discussed the practice of exhausting alternate remedies and warned against taking chances with incorrect averments in petitions.

The Court found that the Petitioner had attempted to mislead the Court by not disclosing the filing of an appeal during the proceedings. This non-disclosure wasted court time and led to the imposition of costs on the Petitioner. The Court ordered the Petitioner to pay costs of Rs. 50,000 to Tata Memorial Hospital within four weeks. Despite considering enhancing the costs due to the misleading statements and suppression of facts, the Court decided to leave the costs at the specified amount, with a warning against such behavior in the future.

The judgment concluded by dismissing the Petition with costs and granting the Petitioner the liberty to pursue the already instituted appeal. The Petitioner was directed to file a compliance report regarding the payment of costs within four weeks. The Court emphasized the importance of acting on an authenticated copy of the order for all concerned parties.