Facts of the Case

The petitioner, M/s. Mirtunjai Udyog, challenged an assessment order passed by the Sales Tax Authorities before the Orissa High Court by filing a writ petition.

During the hearing, the petitioner relied upon the earlier judgment of the Orissa High Court in M/s. The Snow White Trading Corporation vs. State of Orissa, (2014) 71 VST 351 (Orissa) and submitted that the controversy involved in the present writ petition was fully covered by the principles laid down in that decision.

Accordingly, the petitioner sought appropriate relief from the High Court while pursuing the statutory appellate remedy against the assessment order.

 

Issues Involved

  1. Whether the petitioner should be permitted to pursue the statutory appellate remedy against the assessment order while relying upon the earlier binding judgment of the High Court.
  2. Whether the interim protection granted by the High Court should continue until the appellate authority decides the appeal.
  3. Whether the High Court should express any opinion on the merits of the assessment dispute while disposing of the writ petition.

 

Petitioner’s Arguments

  • The petitioner submitted that the controversy raised in the writ petition was already covered by the judgment of the Orissa High Court in M/s. The Snow White Trading Corporation vs. State of Orissa (2014) 71 VST 351 (Orissa).
  • It was requested that the petitioner be permitted to place the said judgment before the appellate authority while filing the statutory appeal against the impugned assessment order.
  • The petitioner also sought continuation of the interim protection granted earlier by the High Court.

 

Respondent’s Arguments

The order does not record any detailed submissions advanced on behalf of the opposite parties. The State was represented by the learned Additional Standing Counsel for the CT & GST Organisation.

 

Court Order / Findings

The Orissa High Court disposed of the writ petition with the following directions:

  • The petitioner was permitted to place the earlier judgment in M/s. The Snow White Trading Corporation vs. State of Orissa (2014) 71 VST 351 (Orissa) before the appellate authority while filing the statutory appeal against the impugned assessment order.
  • The interim order granted by the High Court on 24 August 2017 was directed to continue until the appellate authority passes an appropriate order, provided that the petitioner files the appeal along with the necessary application on or before 8 February 2023.
  • The Court expressly clarified that it had not expressed any opinion on the merits of the dispute.
  • The original annexures were directed to be returned after substitution with attested photocopies, and urgent certified copies of the order were directed to be issued as per rules.

 

Important Clarification

  • The High Court did not adjudicate the merits of the assessment dispute.
  • The petitioner was relegated to the statutory appellate remedy with liberty to rely upon the earlier binding judgment.
  • Interim protection was continued to safeguard the petitioner's rights until consideration by the appellate authority, subject to timely filing of the appeal.
  • The order reinforces the principle that where an effective statutory appellate remedy exists, the High Court may permit the assessee to pursue that remedy while preserving interim protection in appropriate cases.

Sections Involved

  • Relevant provisions governing assessment and statutory appeal under the applicable Orissa Sales Tax Law.
  • Principles relating to the availability of an alternative statutory remedy and reliance on binding judicial precedent.

Link to download the order -

https://www.mytaxexpert.co.in/uploads/1782984104_149compressed.pdf

 

Disclaimer

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