Statutory remedy bars writ challenge to tax assessments, and HUF dues cannot be recovered by arresting the karta.
Where an adequate statutory remedy exists under the taxing law, writ jurisdiction under Article 226 is not ordinarily available to challenge assessment and appellate orders; the challenge to those orders was therefore not entertained. Recovery of sales tax dues attributable to a Hindu undivided family could not be enforced by arresting the karta in a representative capacity; that mode of recovery was prohibited. The petition succeeded only to that limited extent, while the remaining challenge to the assessment orders failed.
Issues: (i) Whether a writ petition under Article 226 of the Constitution of India was maintainable to challenge the assessment and appellate orders under the U.P. Sales Tax Act when an effective statutory remedy was available; (ii) Whether the karta of a Hindu undivided family could be arrested for recovery of sales tax dues of the family.
Issue (i): Whether a writ petition under Article 226 of the Constitution of India was maintainable to challenge the assessment and appellate orders under the U.P. Sales Tax Act when an effective statutory remedy was available.
Analysis: The assessment disputes, including the question whether a Hindu undivided family was a dealer under the sales tax law, were matters for determination within the statutory appellate and revisional framework. The existence of an adequate and complete remedy under the taxing statute, coupled with the age of some of the impugned orders, made recourse to extraordinary writ jurisdiction inappropriate.
Conclusion: The challenge to the assessment and appellate orders was not entertained under Article 226 and the relief on this issue was refused.
Issue (ii): Whether the karta of a Hindu undivided family could be arrested for recovery of sales tax dues of the family.
Analysis: Recovery by arrest against the karta for dues attributable to the Hindu undivided family was held impermissible. The liability for the tax dues of the family could not be enforced by arresting the karta in his representative capacity.
Conclusion: The respondents were restrained from recovering the sales tax dues of the Hindu undivided family by arresting the karta.
Final Conclusion: The petition succeeded only to the limited extent of prohibiting recovery by arrest of the karta, while the remaining challenge to the assessment and appellate orders was dismissed.
Ratio Decidendi: Where an adequate statutory remedy exists, writ jurisdiction should not ordinarily be invoked to challenge tax assessments, and recovery of a Hindu undivided family's dues cannot be enforced by arresting its karta.
TaxTMI 
AI Drafter ✕
TaxTMI 
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