Facts of the Case

The petitioner, M/s. KVR Steel Orissa Ltd., challenged the assessment order dated 29.09.2016 passed by the Sales Tax Officer, Balasore Circle, Balasore before the Orissa High Court by filing a writ petition. The principal grievance was against the assessment order passed by the assessing authority. The High Court observed that the impugned order was appealable under the relevant statutory provisions and considered whether the writ petition should be entertained despite the existence of an alternative statutory remedy.

Issues Involved

Whether the High Court should exercise its writ jurisdiction against an assessment order when a statutory appellate remedy is available.

Whether the petitioner should be permitted to file a delayed statutory appeal after pursuing the writ petition before the High Court.

Whether the pendency of the writ petition could constitute sufficient cause for condonation of delay in filing the statutory appeal.

Petitioner’s Arguments

The petitioner challenged the legality and correctness of the assessment order dated 29.09.2016.

The petitioner invoked the writ jurisdiction of the High Court seeking interference with the assessment order passed by the Sales Tax Officer.

Respondent’s Arguments

The State opposed interference by the High Court, contending that the assessment order was an appealable order under the statutory framework.

Since an effective alternative remedy was available, the writ petition was not maintainable.

Court Order / Findings

The Orissa High Court declined to interfere with the impugned assessment order on the following grounds:

The assessment order was appealable under the statute.

The petitioner was granted liberty to avail the statutory remedy by filing an appeal.

The Court directed that if the appeal was filed on or before 01.02.2023, along with an application for condonation of delay explaining that the delay occurred because of the pendency of the writ petition, the appellate authority should consider the application in accordance with law.

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

Original annexures were directed to be returned after substitution with attested photocopies.

Urgent certified copy was directed to be issued as per rules.

Important Clarification

This judgment reiterates the settled principle that:

High Courts ordinarily do not entertain writ petitions against assessment orders where an effective statutory appellate remedy exists.

The pendency of a writ petition may be considered as a valid ground for seeking condonation of delay while filing the statutory appeal.

The appellate authority must independently examine the application for condonation of delay in accordance with law.

The High Court's refusal to entertain the writ does not amount to affirmation of the assessment order on merits.

Sections Involved

The order does not specifically mention any statutory provision. However, it concerns:

Statutory provisions relating to appeal against assessment orders under the applicable State Sales Tax / VAT law.

Article 226 of the Constitution of India (Writ Jurisdiction).

Link to Download the order: https://www.mytaxexpert.co.in/uploads/1783930897_188compressed.pdf

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