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Issues: (i) Whether verification of the conveyance contravened Rule 138B of the Central Goods and Services Tax Rules, 2017; (ii) Whether writ jurisdiction should be exercised despite the statutory appellate remedy under Section 107 of the Central Goods and Services Tax Act, 2017.
Issue (i): Whether verification of the conveyance contravened Rule 138B of the Central Goods and Services Tax Rules, 2017.
Analysis: Rule 138B permits physical verification by a proper officer authorised by the Commissioner or an empowered officer. The record established that the physical verification was undertaken by an authorised proper officer. Following the earlier remand, a fresh notice was issued, relevant materials were supplied, an opportunity of personal hearing was given, and the reply was considered before the confiscation order was made.
Conclusion: The verification did not contravene Rule 138B, and no jurisdictional defect or breach of natural justice was established.
Issue (ii): Whether writ jurisdiction should be exercised despite the statutory appellate remedy under Section 107 of the Central Goods and Services Tax Act, 2017.
Analysis: The existence of an alternative statutory remedy does not absolutely bar writ jurisdiction, but its exercise requires exceptional circumstances, including breach of fundamental rights, violation of natural justice, excess of jurisdiction, or a challenge to the validity of legislation. None of those circumstances was established. The grievance regarding supply of relied-upon documents and the assessment of the adjudicatory record required factual examination within the appellate framework.
Conclusion: Writ jurisdiction was declined, and the petitioner was required to pursue the statutory appellate remedy.
Final Conclusion: The challenge to the confiscation adjudication remains amenable to examination by the competent appellate authority under the statutory scheme.
Ratio Decidendi: Where a GST adjudication follows notice and opportunity of hearing and no exceptional ground for writ intervention is established, factual or procedural grievances must be pursued through the statutory appellate remedy rather than under Article 226 of the Constitution of India.
GST conveyance verification by an authorised officer must be challenged through statutory appeal absent exceptional grounds for writ intervention.
Rule 138B permits physical verification of a conveyance by a proper officer authorised by the Commissioner or an empowered officer. Verification undertaken by an authorised officer, followed by fresh notice, supply of relevant material, personal hearing and consideration of the reply, does not establish a jurisdictional defect or breach of natural justice. Although an alternative statutory appeal does not wholly exclude writ jurisdiction, intervention requires exceptional grounds, including fundamental-rights infringement, natural-justice breach, jurisdictional excess or a challenge to legislative validity. Factual and procedural objections to confiscation adjudication should therefore be pursued through the statutory appellate mechanism.
Alternative statutory remedy and exceptional writ jurisdiction - Authorisation of proper officer for physical verification of conveyance Physical verification by authorised proper officer - Rule 138B compliance - Compliance with Rule 138B in the physical verification of the conveyance carrying scrap goods - HELD THAT: - Rule 138B permits physical verification by a proper officer authorised by the Commissioner. On examination of the record, the Court found that the physical verification had been undertaken by a proper officer so authorised and that no breach of the Rule or jurisdictional defect was established. [Paras 7] The challenge founded on want of authorisation under Rule 138B was rejected. Alternative statutory remedy - Exceptional writ jurisdiction - Natural justice in confiscation proceedings - Maintainability of the writ challenge to the confiscation order despite the statutory appellate remedy - HELD THAT: - Though availability of an appeal does not absolutely bar writ jurisdiction, it may be exercised only upon established exceptional grounds, including breach of fundamental rights, violation of natural justice, excess of jurisdiction, or challenge to statutory vires. The fresh show-cause notice was followed by an opportunity of personal hearing, consideration of the reply, and supply of the relevant detention, verification and registration-cancellation material. The complaint regarding non-supply of relied-upon documents required examination of the adjudicatory record and fell within the statutory appellate framework; none of the exceptional grounds was made out. See M/S. POWER LINE AIR EXPRESS [2026 (3) TMI 1140 - DELHI HIGH COURT] [Paras 9, 11, 12] The writ petition was dismissed, leaving the petitioner to pursue the statutory appeal. Final Conclusion: The writ petition challenging the confiscation proceedings was dismissed because an efficacious statutory appeal was available and no exceptional ground for exercise of writ jurisdiction was established.