Facts of the Case

The petitioner, M/s Ardee Hi-Tech Pvt. Ltd., filed a writ petition before the Orissa High Court challenging the action of the Assistant Commissioner of Commercial Taxes, Angul Circle, Angul and Others.

During the hearing, the petitioner sought permission to withdraw the writ petition with liberty to avail the statutory appellate remedy under the applicable tax law. The petitioner further requested that if the appeal was filed within the time granted by the Court along with an application for condonation of delay explaining that the writ petition remained pending, the appellate authority should consider the same on merits.

Issues Involved

  1. Whether the petitioner should be permitted to withdraw the writ petition to avail the statutory appellate remedy.
  2. Whether the appellate authority should consider an appeal filed after withdrawal of the writ petition along with an application for condonation of delay.
  3. Whether withdrawal of the writ petition amounts to adjudication of the merits of the dispute.
  4. Whether the High Court should preserve the petitioner's right to pursue the statutory appeal.

Petitioner's Arguments

  • The petitioner sought leave to withdraw the writ petition.
  • It requested liberty to approach the appropriate appellate authority in accordance with law.
  • The petitioner prayed that if the appeal was filed on or before 13 February 2023, accompanied by an application explaining that the delay occurred due to the pendency of the writ petition, the appellate authority should consider such application on its merits.

Respondents' Arguments

  • The respondents were represented before the Court.
  • The order does not record any objection from the respondents to the withdrawal of the writ petition with liberty to avail the statutory appellate remedy.

Court Order / Findings

The Orissa High Court permitted the petitioner to withdraw the writ petition with liberty to file a statutory appeal before the competent appellate authority.

The Court directed that if such appeal was filed not later than 13 February 2023, along with an application seeking condonation of delay on the ground that the writ petition had remained pending before the High Court, the appellate authority should consider the application on its own merits.

The Court expressly clarified that it had not expressed any opinion on the merits of the dispute.

The Court also directed that Annexure-3 be returned to the petitioner after substitution with an attested photocopy and disposed of the writ petition as withdrawn.

Important Clarification

  • The High Court did not decide the merits of the tax dispute.
  • The writ petition was disposed of solely on the petitioner's request to avail the statutory appellate remedy.
  • The appellate authority was directed to independently consider the application for condonation of delay.
  • Withdrawal of the writ petition does not confer any finding in favour of either party.
  • The order reinforces the principle that litigants should ordinarily pursue the statutory appellate mechanism where available.

Sections Involved

  • Statutory Appellate Provisions under the applicable Commercial Tax/Value Added Tax legislation (as applicable).
  • Article 226 of the Constitution of India – Writ Jurisdiction of High Courts.
  • Provisions relating to Condonation of Delay under the applicable appellate law.

Link to download the order - https://mytaxexpert.co.in/uploads/1782891016_211compressed.pdf

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