Statutory appellate remedy prevails in VAT and CST assessment disputes, with interim protection against coercive recovery.

A writ challenge to VAT and CST assessment orders was not entertained because an efficacious statutory appeal was available under the Karnataka Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956. The petitioner was permitted to pursue the appellate remedy, and if the appeal was filed within the stipulated period, the appellate authority was directed to consider it on merits without raising limitation objections. In light of the garnishee notice and the pending appeal, the Court also stayed coercive recovery until the appellate authority decided the stay application, subject to compliance with Section 63(4) of the Karnataka Value Added Tax Act, 2003.

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Issues: Whether the writ petition challenging VAT and CST assessment orders should be entertained or the petitioner should be relegated to the statutory appellate remedy, and whether interim protection was warranted against coercive recovery.

Analysis: The assessment challenge involved factual and legal questions for which an efficacious statutory appeal was available under the Karnataka Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956. The Court therefore permitted the petitioner to pursue the appellate remedy and directed that, if the appeal was filed within the stipulated period, the appellate authority should consider it on merits without objecting to limitation. In view of the garnishee notice and pending appeal, the Court also protected the petitioner by staying coercive recovery until the appellate authority decided the stay application, subject to compliance with Section 63(4) of the Karnataka Value Added Tax Act, 2003.

Conclusion: The writ petition was not entertained on merits and the petitioner was relegated to the statutory appeal remedy, with interim stay protection against the garnishee notice.

Final Conclusion: The dispute was disposed of by directing recourse to the statutory appellate mechanism while preserving interim protection against recovery proceedings.

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