Court dismisses petition challenging notice for revision & refund withholding, directs engagement in revisional process.

The court dismissed the petition challenging the impugned notice for revision and withholding of refund, instructing the petitioners to engage in the revisional process and respond to the show cause notice. The court emphasized the importance of exhausting statutory remedies before seeking relief through a writ petition and directed the Revisional Authority to decide on the matter within two months while ensuring principles of natural justice were followed.

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Issues:
1. Entitlement to refund after order by First Appellate Authority.
2. Validity of impugned notice for revision dated 23.08.2016.
3. Jurisdiction of Revisional Authority under Section 59 of Gujarat Sales Tax Act.

Entitlement to Refund:
The petitioners sought a writ to quash an impugned notice for revision and withholding of refund. The First Appellate Authority had declared the petitioners entitled to a refund of a specific amount. However, a subsequent notice for revision was issued by the Revisional Authority, challenging the refund order. The petitioners argued that despite the availability of an efficacious remedy, the impugned notice was issued, preventing the refund. They contended that the grounds cited in the notice, particularly unjust enrichment, were not applicable in this case.

Validity of Impugned Notice:
The respondent raised a preliminary objection regarding the entertainability of the petition under Article 226, stating that the proceedings were at the show cause notice stage. The Assistant Government Pleader argued that the petitioners should respond to the show cause notice and exhaust statutory remedies before seeking relief. The petitioner's counsel countered, emphasizing that the impugned notice was issued to prevent the refund, even though the First Appellate Authority had already determined their entitlement.

Jurisdiction of Revisional Authority:
The court examined the jurisdiction of the Revisional Authority under Section 59 of the Gujarat Sales Tax Act. It was noted that the petitioners had not yet responded to the show cause notice issued by the Revisional Authority. Citing relevant legal precedents, the court emphasized the importance of exhausting statutory remedies before seeking relief through a writ petition. The court directed the petitioners to reply to the show cause notice and participate in the revisional proceedings, allowing the Revisional Authority to decide on the matter within two months while ensuring principles of natural justice were followed.

In conclusion, the court dismissed the present petition, instructing the petitioners to engage in the revisional process and respond to the show cause notice. The Revisional Authority was directed to adjudicate on the matter within a specified timeframe, maintaining fairness and providing ample opportunity for the petitioners to present their case.

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