Facts of the Case

The petitioner had earlier approached the High Court of Tripura in this writ petition, and by an order dated 09.11.2021 was granted liberty to pursue a statutory appellate remedy against the impugned GST proceedings. Pursuant to that liberty, the petitioner filed a statutory appeal, which was pending consideration before the appellate authority. When the matter was taken up again, the Court was informed of a general notice dated 10 January 2022 (No. F.1(1)-TAX/GST/Appeal/Misc./2020/42574) issued by the State Tax Department, Government of Tripura, by which hearing of all GST appeal cases before the appellate authority had been indefinitely delayed on account of the COVID-19 pandemic. Since COVID conditions had substantially improved in the State by the date of hearing, the petitioner sought appropriate directions for expeditious disposal of the pending appeal and withdrawal of the notice suspending appeal hearings.

Issues Involved

  1. Whether the writ petition, having achieved its purpose through the liberty already granted, could be permitted to be withdrawn with liberty reserved.
  2. Whether the general notice indefinitely delaying hearing of all GST appeal cases in Tripura remained justified once COVID-19 conditions had substantially eased.

Petitioner's Arguments

  • Pursuant to liberty granted on 09.11.2021, the petitioner had already filed a statutory appeal, which was pending before the appellate authority.
  • The petitioner sought withdrawal of the writ petition with liberty to seek remedy against the eventual appellate order, if required.
  • The petitioner brought to the Court's notice the general notice dated 10 January 2022 by which the State Tax Department had indefinitely delayed all GST appeal hearings, and sought its withdrawal given the improved COVID situation.

Respondent's Arguments

  • The extracted order does not record any specific contentions advanced on behalf of the State Tax Department in opposition; the Additional Commissioner of State Tax who issued the notice was directed to act without recorded opposition.

Court Order/Findings

  • The Court permitted the petitioner to withdraw the writ petition, reserving liberty to seek remedy against the appellate order, should the need arise.
  • The pending statutory appeal was directed to be disposed of expeditiously, preferably within six months from communication of the order.
  • Noting that COVID-19 was substantially under control in Tripura, the Court directed the Additional Commissioner of State Tax who had issued the 10 January 2022 notice to immediately withdraw the notice indefinitely delaying all GST appeal hearings.

Important Clarification

  • A general administrative notice indefinitely suspending hearing of GST appeals cannot be allowed to continue once the underlying justification (the COVID-19 pandemic) has substantially abated.
  • Withdrawal of a writ petition with liberty reserved does not foreclose a taxpayer's right to challenge an adverse appellate order later.

Sections Involved

  • Section 107, Tripura State Goods and Services Tax Act, 2017 — statutory appeal against GST orders, invoked by the petitioner pursuant to the liberty granted.
  • Article 226, Constitution of India — writ jurisdiction under which the petition was originally filed and later withdrawn with liberty.

Decision – In Favour of

The writ petition was disposed of as withdrawn, with liberty reserved to the petitioner. This is not a decision on the merits of the underlying GST dispute; however, the directions — a firm six-month timeline for disposal of the pending appeal, and immediate withdrawal of the department's notice delaying all GST appeal hearings — operate in favour of the Assessee by ensuring the stalled appellate remedy moves forward without further administrative delay.

Related Case Laws

No related case laws are available on this site at present.

Case Details

  • Court: High Court of Tripura, Agartala
  • Case No.: WP(C) 749/2021
  • Coram: Hon'ble the Chief Justice Mr. Indrajit Mahanty and Hon'ble Mr. Justice S.G. Chattopadhyay
  • Date of Order: 20 April 2022

Link to Download the Order

Download the full judgment (PDF)

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