Writ jurisdiction and disputed tax facts: statutory appeal was the proper route for a Wind Mill division sale dispute.

Writ jurisdiction is not ordinarily exercised where an assessment dispute turns on disputed facts and an effective statutory appellate remedy is available. The challenge to taxability of the sale of a Wind Mill division required examination of the slump sale agreement, the nature of transfer as a going concern, and the claimed exemption under the Tamil Nadu Value Added Tax Act, 2006 and the Income-tax Act, 1961. Because the controversy was not confined to a pure question of law and depended on factual adjudication, the writ court was justified in declining interference and directing the assessee to pursue the statutory remedy.

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Issues: Whether the writ petition was maintainable in view of the availability of the statutory appellate remedy, and whether the dispute concerning taxability of the sale of the Wind Mill division involved only a pure question of law.

Analysis: The challenge to the assessment required examination of the nature and effect of the slump sale agreement and other surrounding facts, including whether the transfer of the Wind Mill division as a going concern attracted the exemption claimed under the Tamil Nadu Value Added Tax Act, 2006 and the Income-tax Act, 1961. Since the controversy was not confined to a pure jurisdictional question and turned on factual adjudication, the writ court was justified in declining interference and directing the appellant to pursue the statutory remedy.

Conclusion: The writ petition was not maintainable in the facts of the case, and the dismissal of the writ petition was in law.

Ratio Decidendi: Writ jurisdiction is not ordinarily exercised where the assessment dispute depends on disputed facts and an effective statutory appellate remedy is available.

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