2021 (7) TMI 1160 - HC - VAT and Sales Tax

Maintainability of petition - alternative remedy of appeal was not exhausted - validity of assessment order - HELD THAT - Admittedly, the present Writ Petitions are filed challenging the final assessment orders and therefore, the petitioner is bound to exhaust the statutory remedies provided under the provisions of the Act. The importance of the appellate remedy at no circumstances be undermined, as the appellate authorities are the final fact finding authorities - Preferring an appeal is the rule. Entertaining a Writ Petition before exhausting the appellate remedy is an exception. Undoubtedly, writ proceedings may be entertained before exhausting the appellate remedy. The power of judicial review of the High Court under Article 226 of the Constitution of India is to scrutinize the processes through which a decision is taken by the competent authority by following the procedures as contemplated, but not the decision itself. Therefore, the routine entertainment of a Writ Petition by dispensing with appellate remedy is not preferable and such an exercise would cause injury to the institutional hierarchy and the importance attached to such appellate institutions. The appellate institutions provided under the statute at no circumstances be undermined by the higher Courts - The High Court cannot conduct a roving enquiry with reference to the facts and circumstances based on the documents and evidences. Based on the mere affidavits filed by the litigants, the disputed facts cannot be concluded. The practise of filing the Writ Petition without exhausting the statutory remedies are in ascending mode and such Writ Petitions are filed with a view to avoid pre-deposits to be made in statutory appeals and on the ground that the appellate remedies are time consuming - the petitioner is at liberty to prefer an appeal before the jurisdictional competent authority, in a prescribed format, complying with the provisions of the Acts and Rules, within a period of four weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues: Challenge to revision orders passed by Assistant Commissioner, applicability of previous court order, appealability of final assessment orders, importance of exhausting statutory remedies before approaching the court.

Analysis:
1. Challenge to Revision Orders: The Writ Petitions challenge the revision orders issued by the Assistant Commissioner. The court noted that a previous order directed the Commissioner to nominate an Officer to inquire into the matter and pass an appropriate order. However, the present Writ Petitions challenge the final assessment orders, not the revision notices. The judgment relied upon by the petitioner is deemed inapplicable as the present challenge pertains to final revision orders issued.

2. Appealability of Final Assessment Orders: The court emphasized that final assessment orders are appealable. Multiplicity of litigation to avoid addressing issues promptly is discouraged. The procedures outlined by the law must be strictly followed to reach finality in resolving disputes. Routine intervention in departmental proceedings is not desirable unless there are exceptional circumstances like lack of jurisdiction or malafides.

3. Importance of Exhausting Statutory Remedies: The court highlighted the significance of exhausting statutory remedies before resorting to Writ Petitions. Appellate authorities are crucial as final fact-finding bodies. Preferring an appeal is the norm, and Writ Petitions should be exceptions granted only in cases of imminent threat or gross injustice. Mere violation of natural justice principles is insufficient to bypass the appellate remedy.

4. Judicial Review and Appellate Authorities: The power of judicial review under Article 226 is to scrutinize the decision-making process, not the decision itself. Appellate forums are final fact-finding bodies possessing expertise in specific fields. The High Court should not conduct a detailed inquiry based solely on affidavits; the importance of fact-finding by appellate forums is paramount for dispensing complete justice.

5. Delay as Ground for Writ Petition: The court acknowledged delay as a valid ground for entertaining a Writ Petition. Filing Writ Petitions without exhausting statutory remedies is on the rise, often to avoid pre-deposits in appeals or due to perceived time-consuming nature of appellate remedies.

In conclusion, the court directed the petitioner to prefer an appeal before the competent authority within a specified period, ensuring compliance with Acts and Rules. The appellate authority was instructed to consider the appeal expeditiously, providing an opportunity for all concerned parties. The Writ Petitions were disposed of with these directions, emphasizing the importance of exhausting statutory remedies before approaching the court.