2025 (2) TMI 467 - HC - GST

Maintainability of petition - availability of alternative remedy - concessional rate of tax at 12% under N/N. 11/2017-Central Tax (Rate) - denial of opportunity of hearing as mandated by Section 75 of the Act 2017 - violation of principles of natural justice - HELD THAT - It is well settled law that mere availability of an alternative remedy of appeal or revision which the party invoking the jurisdiction of the High Court under Article 226 of the Constitution of India has not pursued would not oust the jurisdiction of the High Court and render a writ petition as not maintainable. Where the controversy is a purely legal one and it does not involve disputed questions of fact but only questions of law petition cannot be throw/dismissed only on the ground of alternative remedy. However the averments in the present petition itself depicts that two notices were received by the petitioner and the reason for not responding to such notices is not sufficient it is mentioned that due to lack of awareness and technical knowledge the petitioner could not respondent to the said notice . Therefore it cannot be said that substantial compliance of natural justice has not been made. Moreover there is efficacious alternative remedy in favour of the petitioner of filing an appeal under Section 107 of the Act 2017. Conclusion - i) Mere availability of an alternative remedy does not render a writ petition not maintainable if the controversy involves purely legal questions. ii) This Court is of the view that the petitioner has not been able to make out a case for interference by this Court under Article 226 of the Constitution of India. Petition dismissed.

Summary

The issues presented and considered in the judgment are as follows:1. Whether the impugned order passed against the petitioner under the Central Goods and Services Tax Act, 2017 is arbitrary and contrary to law.2. Whether the services provided by the petitioner are taxable at the concessional rate of 12% under Notification No. 11/2017-Central Tax (Rate).3. Whether the petitioner was denied the opportunity of hearing as mandated by Section 75 of the Act 2017.Issue-wise detailed analysis:Issue 1:Relevant legal framework and precedents: The petitioner challenged the order passed against them under the Central Goods and Services Tax Act, 2017.Court's interpretation and reasoning: The Court considered the petitioner's argument that the services provided were not covered under the GST rate of 28% but should be taxed at the concessional rate of 12% as per a government notification. The Court also noted the petitioner's contention that they were not granted the opportunity of hearing as required by law.Key evidence and findings: The petitioner received notices but did not respond due to lack of awareness and technical knowledge.Application of law to facts: The Court examined the provisions of Section 75 of the Act 2017 regarding the opportunity of hearing.Treatment of competing arguments: The State counsel argued that the petitioner had an alternative remedy under Section 107 of the Act 2017 and had not availed it.Conclusions: The Court found that the petitioner failed to establish a case for interference under Article 226 of the Constitution of India, and the petition was dismissed.Significant holdings:The Court held that the petitioner's failure to respond to notices due to lack of awareness did not justify interference by the Court. The availability of an alternative remedy under Section 107 of the Act 2017 was also noted.Core principles established:- Mere availability of an alternative remedy does not render a writ petition not maintainable if the controversy involves purely legal questions.- Lack of awareness and technical knowledge does not excuse non-compliance with legal requirements.- The Court may not interfere under Article 226 if an alternative remedy is available and not pursued.Final determinations on each issue:The petition was dismissed as the petitioner failed to demonstrate grounds for interference by the Court under Article 226 of the Constitution of India.This judgment highlights the importance of compliance with legal requirements, the availability of alternative remedies, and the limitations on the Court's interference in matters involving disputed questions of fact.