2021 (8) TMI 1069 - HC - GST

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 ... Maintainability of petition - availability of alternative remedy of appeal - instead of filing appeal, present writ petitions are filed raising certain factual grounds as well as legal grounds with reference to the provisions of the TNGST Act - HELD THAT:- Perusal of the assessment orders impugned dated 15.02.2021 states that appeal against the order, if any, may be filed before the Deputy Commissioner (ST), GST Appeal, Coimbatore within a period of three months from the date of receipt of the order. The petitioner, instead of preferring an appeal before the competent appellate authority, has chosen to file these writ petitions claiming that the authorities have committed certain irregularity in appreciating the documents and objections submitted by the petitioner. This Court is of the considered opinion that when an appellate remedy is contemplated under the provisions of the TNGST Act, more specifically under Section 107, the petitioner has to exhaust the appellate remedy before approaching the court of law. High Court cannot adjudicate the disputed issues between the parties, which is to be done by the original authority as well as by the appellate authority with reference to the documents and evidences - High Court cannot dispense with the appellate remedy in a casual and mechanical manner. An aggrieved person need not be deprived of valuable right of appellate remedy for effective adjudication of facts and circumstances with reference documents. Power of judicial review of the High Court under Article 226 of the Constitution of India is to scrutinize the processes and the procedures adopted by the competent authorities for arriving a particular decision in accordance with law, but not the decision itself. Thus, the High Court cannot entertain an adjudicative process regarding the mixed question of fact and law with reference to the documents and evidences in original - adjudication before the appellate authority with reference to such disputed findings of the original authority would be of greater importance. The petitioner is at liberty to prefer an appeal in a prescribed format and by complying with the Act and Rules and in the event of filing any such appeal, the appellate authority competent shall dispose of the same on merits and in accordance with law as expeditiously as possible - Petition dismissed. 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.