Facts of the Case

  • The Petitioner, M/s. Agrawal Infrabuild Pvt. Ltd., Khurda, filed a writ petition under Article 226 of the Constitution of India before the Hon'ble High Court of Orissa.
  • The petition directly challenged an adverse assessment/demand order passed against them by the Revenue Department, specifically issued by the Additional CT & GST Officer, CT & GST Circle, Jatni.
  • Instead of exhausting the statutory appellate channels provided under the state and central GST frameworks, the Petitioner directly approached the High Court seeking extraordinary writ jurisdiction to quash the impugned order.

Issues Involved

  • Whether a writ petition under Article 226 of the Constitution of India is maintainable before the High Court when an alternative, efficacious, and statutory remedy of appeal is expressly available under the CGST/OGST Act?
  • Whether the High Court should entertain a challenge against an assessment order passed by an Additional CT & GST Officer when the assessee has skipped the mandatory appellate mechanism?
  • Whether the period during which a writ petition was pending before the High Court can be considered a valid ground for condonation of delay if the petitioner is directed back to the statutory Appellate Authority?

Petitioner’s Arguments

  • The learned counsel for the Petitioner, Mr. A.N. Mohanty, Advocate, argued that the impugned order passed by the Additional CT & GST Officer, Jatni, suffered from legal infirmities that warranted direct intervention by the High Court under its writ jurisdiction.
  • It was implicitly contended that approaching the High Court directly was necessary to prevent immediate adverse recovery actions by the GST department.
  • The Petitioner sought a determination on the merits of the dispute from the High Court, asserting that the departmental order was liable to be set aside.

Respondent’s Arguments

  • The Commercial Taxes & Goods and Services Tax Organization, represented by Mishra, ASC, strongly objected to the maintainability of the writ petition.
  • The Respondent argued that the CGST/OGST Act is a self-contained code that provides a complete machinery for the adjudication and rectification of grievances, specifically via an appeal under Section 107.
  • The Revenue asserted that since the impugned order passed by the Additional CT & GST Officer was an appealable order, the Petitioner could not bypass the statutory remedy without demonstrating exceptional circumstances (such as a total breach of natural justice or absolute lack of jurisdiction), which were absent in this case.

Court Order / Findings

  • The Division Bench of the Hon'ble High Court of Orissa, comprising Dr. S. Muralidhar (Chief Justice) and M. S. Raman (Judge), observed that the order challenged in the writ petition by the Additional CT & GST Officer, Jatni, is entirely an appealable one under the law.
  • Consequently, the High Court declined to entertain the matter on its merits and disposed of the writ petition, permitting the Petitioner to avail themselves of the statutory remedy of appeal provided in accordance with the law.
  • To protect the Petitioner's right to a fair hearing, the Court directed that if such an appeal is filed by the Petitioner no later than 16th January, 2023, along with an application for condonation of delay citing the pendency of the writ petition, the Appellate Authority shall consider it in accordance with the law.

Important Clarification

  • No Expression on Merits: The High Court explicitly clarified that it has not expressed any view or opinion on the actual merits of the tax dispute or the validity of the underlying assessment order. All legal grounds and arguments remain open for the Petitioner to agitate before the statutory Appellate Authority.
  • Condonation of Delay Guidance: The Court provided a practical window for the assessee to transition from the writ court to the appellate tribunal, establishing that the time spent bona fide pursuing the writ petition could be cited as a valid reason for delaying the statutory appeal.

Section Involved

  • Primary Section: Section 107 of the Central Goods and Services Tax (CGST) Act, 2017 / Orissa Goods and Services Tax (OGST) Act, 2017 (Appeals to Appellate Authority).
  • Constitutional Provision: Article 226 of the Constitution of India (Power of High Courts to issue certain writs).

Link to download the order – https://mytaxexpert.co.in/uploads/1782972411_270compressed.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.