2022 (12) TMI 266 - HC - VAT and Sales Tax

Maintainability of petition - alternate remedy of appeal available to the Petitioner - Validity of assessment order - HELD THAT - Hon ble Supreme Court in the recent decision in the case of THE STATE OF MAHARASHTRA AND OTHERS VERSUS GREATSHIP (INDIA) LIMITED 2022 (9) TMI 896 - SUPREME COURT while deciding a challenge to the order of the Division Bench of this Court, where the Division Bench had entertained a writ petition inspite of availability of alternate remedy, no cogent reason the respondent therein had sought to support the decision of the Division Bench entertaining the Writ Petition against the Order of Assessment by relying on various decisions including that of the Hon ble Supreme Court in WHIRLPOOL CORPORATION VERSUS REGISTRAR OF TRADE MARKS, MUMBAI ORS. 1998 (10) TMI 510 - SUPREME COURT . The Hon ble Supreme Court observed that the assessee straightway preferred writ petition under Article 226 of the Constitution of India when it was not in dispute that the statutes provided for the right of appeal against the assessment order passed by the Assessing Officer and against the order passed by the first appellate authority, an appeal/revision would lie before the Tribunal - The Hon ble Supreme Court held that the High Court ought not to have entertained the writ petition under Article 226 of the Constitution of India challenging the assessment order in view of the availability of statutory remedy under the Act and there was no exceptional reason. The appeal filed by the State Government was thus allowed on the ground that the High Court should not have entertained a writ petition inspite of alternate remedy. Considering the dicta laid down by the Hon ble Supreme Court and the fact that the Petitioner has alternate remedy of Appeal, we dispose of the Writ Petition - petition disposed off.

Summary

Issues:
Challenge to assessment order and consequential freezing of bank account - Entertainment of writ petition despite availability of alternate remedy of appeal - Application of settled legal position by the Hon'ble Supreme Court.

Analysis:
The Petitioner challenged the Order of Assessment passed by Respondent no. 1 on 11 February 2021, leading to the freezing of the Petitioner's bank account. The Respondent and learned AGP opposed the Petition, citing the availability of an alternate remedy of appeal for the Petitioner to raise all arguments. The Respondent contended that the petition should not be entertained due to the existence of statutory procedures.

In a detailed legal analysis, the judgment referred to the case of CCE v. Dunlop India Ltd. (1985) 1 SCC 260, where the Hon'ble Supreme Court emphasized that Article 226 should not bypass statutory procedures unless statutory remedies are inadequate for extraordinary situations. The judgment highlighted that writ jurisdiction should not be exercised in revenue matters where statutory remedies are available. The judgment also cited various cases where the Supreme Court reiterated the importance of exhausting alternative remedies before seeking writ jurisdiction.

The judgment further discussed the recent decision in the case of State of Maharashtra & Ors. vs. Greatship (India) Ltd., where the Hon'ble Supreme Court emphasized that the High Court should not entertain a writ petition challenging an assessment order when statutory remedies are available, unless there are exceptional reasons. The Court held that the High Court erred in entertaining the writ petition when the Petitioner had an alternate remedy of appeal.

Based on the settled legal position by the Hon'ble Supreme Court, the Court found merit in the Respondent's contention. Considering the availability of an alternate remedy of appeal for the Petitioner, the Court disposed of the Writ Petition in line with the dicta laid down by the Supreme Court. The judgment emphasized the importance of following established legal principles and exhausting statutory remedies before seeking writ jurisdiction.