Dismissal of Writ Petitions on TNGST Act Show Cause Notices Emphasizes Appellate Remedy

The High Court dismissed the writ petitions challenging show cause notices issued under the TNGST Act, 2017. Emphasizing the need to exhaust appellate remedies before approaching the court, the Court highlighted the appellate authority's role as the final fact-finding body. Judicial review under Article 226 is limited to scrutinizing processes, not decisions. The Court cannot resolve factual disputes in writ petitions and urged the petitioner to pursue the appeal process diligently. No costs were awarded, and the petitioner was directed to address legal and factual issues through the prescribed appellate procedure.

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Issues:
Challenge to impugned orders under Sections 73(4) and 74(1) of the TNGST Act, 2017.

Analysis:
The petitioner, a manufacturer of TMT Rods, faced financial difficulties leading to non-repayment obligations to their bankers. The Intelligence Wing of State GST visited the factory premises and recorded a statement from another entity operating the unit, which led to show cause notices being issued for three assessment years. The petitioner cooperated, produced documents, and filed replies, but final orders were passed on 15.02.2021, prompting the petitioner to file writ petitions challenging the orders.

The High Court emphasized that when an appellate remedy is available under the TNGST Act, the petitioner must exhaust it before approaching the court. The appellate authority is the final fact-finding body, and its adjudication of facts is crucial for the High Court's judicial review under Article 226 of the Constitution. The Court cannot adjudicate disputed issues that fall within the appellate authority's purview, and the appellate remedy should not be casually dispensed with unless there is imminent urgency or irreparable harm.

The power of judicial review under Article 226 allows the High Court to scrutinize the processes and procedures followed by competent authorities, not the decision itself. The Court cannot resolve mixed questions of fact and law solely based on affidavits in writ petitions, as this may lead to errors. Therefore, adjudication before the appellate authority with reference to disputed findings is essential for a fair and comprehensive review.

In light of these considerations, the Court dismissed the writ petitions, allowing the petitioner to appeal in the prescribed format and ensuring that the appellate authority disposes of the appeal on its merits and in accordance with the law promptly. The petitioner retains the right to raise factual and legal grounds, including jurisdictional issues and principles of natural justice. No costs were awarded, and connected miscellaneous petitions were closed as a result of the judgment.

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