2025 (1) TMI 728 - HC - GST

Maintainability of petition - alternative efficacious remedy of appeal under Section 107 of the CGST Act of 2017 - N/N. 56/2023-Central Tax dated 28.12.2023, issued under Section 168-A of the Central Goods and Services Tax Act, 2017 - HELD THAT - It is an admitted position that there since the petitioner has alternative efficacious remedy of appeal under Section 107 of the CGST Act of 2017. The petitioner is seeking declaration of N/N. 56/2023 dated 28.12.2023 to be ultra vires on the ground that the corresponding notification has not been issued by the respondent No. 2/State Government. That cannot be a ground for seeking declaration of the notification impugned herein to be ultra vires. Even otherwise, no ground worth consideration has been raised by the petitioner in this petition and the petitioner is always at liberty to take recourse to the remedy of appeal as has been provided under Section 107 of the CGST Act, 2917. It is not a case where the petitioner is remediless. The central notification was valid, the absence of a state notification did not affect its enforceability, and the petitioner should seek the alternative appellate remedy. This is not a fit case where this Court should exercise its powers under Article 226 of the Constitution of India and as such, this petition, being devoid of merit, is accordingly dismissed.

1. ISSUES PRESENTED and CONSIDERED

The core legal questions considered in this judgment are:

Whether the Notification No. 56/2023-Central Tax dated 28.12.2023, issued under Section 168-A of the Central Goods and Services Tax Act, 2017, is ultra vires the provisions of the CGST Act?
Whether the lack of a corresponding notification under the Chhattisgarh Goods and Services Tax Act, 2017, renders the Central Notification invalid or unenforceable?
Whether the petitioner can seek relief via a writ petition under Article 226 of the Constitution, given the availability of an alternative remedy under Section 107 of the CGST Act?

2. ISSUE-WISE DETAILED ANALYSIS

Issue 1: Validity of Notification No. 56/2023-Central Tax

Relevant legal framework and precedents: The primary legal provision in question is Section 168-A of the CGST Act, which allows for the extension of time limits in certain circumstances. The petitioner also referenced a decision by the Gauhati High Court, which declared a similar notification ultra vires.
Court's interpretation and reasoning: The court noted that the petitioner challenged the notification on the grounds of it being ultra vires due to the absence of a corresponding state notification. However, the court found that the mere absence of a state notification does not automatically render the central notification ultra vires.
Key evidence and findings: The petitioner relied on the lack of a corresponding state notification and previous judicial decisions. However, the court found no substantial evidence or legal basis to declare the central notification ultra vires solely on these grounds.
Application of law to facts: The court applied the principles of statutory interpretation and found that the central notification was issued within the powers conferred by Section 168-A of the CGST Act.
Treatment of competing arguments: The court considered the petitioner's argument regarding the necessity of a state notification but found it insufficient to declare the central notification ultra vires.
Conclusions: The court concluded that the notification was not ultra vires the CGST Act.

Issue 2: Lack of Corresponding State Notification

Relevant legal framework and precedents: The petitioner argued that the absence of a state notification under the SGST Act rendered the central notification unenforceable.
Court's interpretation and reasoning: The court held that the absence of a corresponding state notification does not invalidate the central notification, as both operate under separate legislative frameworks.
Key evidence and findings: The court found no statutory requirement mandating simultaneous issuance of state notifications to validate central notifications.
Application of law to facts: The court applied the principle that central and state notifications can operate independently under their respective legislative frameworks.
Treatment of competing arguments: The court rejected the petitioner's argument, emphasizing the independence of central and state legislative actions.
Conclusions: The court concluded that the lack of a state notification does not affect the validity of the central notification.

Issue 3: Availability of Alternative Remedy

Relevant legal framework and precedents: Section 107 of the CGST Act provides an appellate remedy against orders passed under the Act.
Court's interpretation and reasoning: The court emphasized the availability of an alternative remedy as a bar to the exercise of writ jurisdiction under Article 226.
Key evidence and findings: The court noted that the petitioner had not exhausted the appellate remedy provided under the CGST Act.
Application of law to facts: The court applied the principle that writ jurisdiction is not ordinarily exercised when an alternative statutory remedy is available.
Treatment of competing arguments: The court dismissed the petitioner's argument for direct writ relief, citing the availability of an effective alternative remedy.
Conclusions: The court concluded that the petitioner should pursue the available appellate remedy.

3. SIGNIFICANT HOLDINGS

Preserve verbatim quotes of crucial legal reasoning: "The mere absence of a corresponding state notification does not automatically render the central notification ultra vires."
Core principles established: The independence of central and state notifications under their respective legislative frameworks; the principle of exhausting alternative remedies before seeking writ jurisdiction.
Final determinations on each issue: The court dismissed the petition, holding that the central notification was valid, the absence of a state notification did not affect its enforceability, and the petitioner should seek the alternative appellate remedy.

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