Facts of the Case

The petitioner, M/s Sumeet Traders, instituted W.P.(C) No. 1991 of 2020 before the Orissa High Court against the Commissioner of Commercial Taxes, Orissa & Others.

At the time of hearing, learned counsel for the petitioner sought permission to withdraw the writ petition with liberty to make the mandatory statutory pre-deposit before the Tribunal in accordance with the prevailing statutory requirements so that the petitioner could pursue the appropriate appellate remedy under law.

Issues Involved

  1. Whether the petitioner should be permitted to withdraw the writ petition to comply with the statutory pre-deposit requirement before the Tribunal.
  2. Whether the High Court should grant liberty to the petitioner to pursue the statutory appellate remedy after making the prescribed pre-deposit.
  3. Whether disposal of the writ petition as withdrawn amounts to adjudication on the merits of the dispute.

Petitioner's Arguments

  • The petitioner requested leave to withdraw the writ petition.
  • It sought liberty to make the required statutory pre-deposit before the Tribunal in accordance with the current legal provisions.
  • The petitioner intended to pursue the statutory remedy after complying with the mandatory pre-deposit requirement.

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 comply with the statutory pre-deposit requirement.

Court Order / Findings

The Orissa High Court allowed the petitioner's request to withdraw the writ petition.

The Court granted liberty to the petitioner to make the pre-deposit before the Tribunal in accordance with the current statutory requirement.

Accordingly, the writ petition was disposed of as withdrawn, granting the liberty sought by the petitioner.

The Court did not examine or express any opinion on the merits of the underlying tax dispute.

Important Clarification

  • The High Court did not adjudicate the merits of the dispute.
  • The writ petition was disposed of solely on the petitioner's request to pursue the statutory remedy after fulfilling the mandatory pre-deposit requirement.
  • The order safeguards the petitioner's right to approach the Tribunal in accordance with law.
  • The judgment reinforces the settled principle that statutory remedies should ordinarily be pursued after complying with mandatory procedural requirements such as pre-deposit.
  • No finding was recorded regarding the legality or correctness of the tax demand or proceedings.

Sections Involved

  • Statutory provisions relating to mandatory pre-deposit under the applicable Commercial Tax/Value Added Tax legislation.
  • Article 226 of the Constitution of India – Writ Jurisdiction of High Courts.
  • Appellate provisions governing appeals before the Tribunal under the applicable tax law.

Link to download the order - https://mytaxexpert.co.in/uploads/1782894864_214compressed.pdf

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