2023 (10) TMI 106 - HC - VAT and Sales Tax

Maintainability of petition - availability of alternative remedy - levy of penalty, interest and a direction to deposit a sum of Rs. 86,04,010/- after adjusting a sum of Rs. 5,82,646/- deposited in excess, in the year 2008-09 - delayed payment of tax - HELD THAT - From the arguments advanced and the materials brought on record it is satisfied that this is not a fit case where the existence of alternative remedy can be bypassed. The petitioner shall have all liberty to raise all such plea/ grounds as raised before us before the Appellate Forum. In such view of the matter the petitioner is relegated to file an appeal before the Appellate Authority under Section 57 of the VAT Act 2008. The writ petition is dismissed on the ground of availability of alternative remedy.

Summary

Issues involved: Challenge to order imposing penalty under Section 34 (8) of U.P VAT Act, 2008 and quashing of proceedings emanating from a notice under the same section.

Summary:
The petitioner, a Public Charitable Trust engaged in providing medical education and facilities, challenged an order imposing a penalty of Rs. 91,86,656 under Section 34 (8) of the U.P VAT Act, 2008, along with a requirement to deposit Rs. 86,04,010. The petitioner deposited tax for the Assessment Year 2014-15, but faced penalties for delays in subsequent deposits. The petitioner argued that the penalty was unjustified and contrary to Section 40 of the VAT Act, citing a relevant case law. The respondent contended that the orders were valid and appealable under Section 57 of the Act.

The High Court held that the petitioner must pursue the available appellate remedy under Section 57 of the VAT Act, 2008, as it was not a case warranting bypassing of alternative remedies. The writ petition was dismissed on the ground of the existence of an alternative remedy.