Alternate remedy rule bars writ review of tax assessment where natural justice was followed and statutory appeal exists.

In revenue matters under the Tamil Nadu Value Added Tax Act, 2006, the Madras HC reiterated that writ jurisdiction is ordinarily unavailable where an effective statutory appeal or revision exists. The challenge to the assessment concerned reversal of input tax credit and raised only the correctness of tax computation. The Court found that notice had been issued and multiple opportunities to respond were given, so no breach of natural justice occurred. As none of the recognised exceptions to the alternate remedy rule were shown, including violation of fundamental rights, excess of jurisdiction, or challenge to vires, the writ petition was held not maintainable and the assessee was left to pursue the statutory remedy.

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Issues: Whether the writ petition challenging the assessment order was maintainable in view of the alternate statutory remedies under the Tamil Nadu Value Added Tax Act, 2006, and whether any exception to the alternate remedy rule was made out.

Analysis: The impugned assessment arose under the Tamil Nadu Value Added Tax Act, 2006 and the dispute concerned reversal of input tax credit. The Court noted that the petitioner had been given notice and multiple opportunities to respond, and therefore there was no denial of a reasonable opportunity or breach of natural justice. The challenge raised at best a dispute on the correctness of the tax computation, which was a matter for statutory appeal or revision and not for writ interference. Relying on the settled rule that writ jurisdiction should ordinarily not be exercised in revenue matters where an effective statutory remedy exists, the Court held that none of the recognised exceptions, including breach of fundamental rights, violation of natural justice, excess of jurisdiction, or challenge to vires, was attracted.

Conclusion: The writ petition was not maintainable and the petitioner was relegated to the statutory appellate or revisional remedy.

Ratio Decidendi: In revenue matters, where an effective statutory remedy is available and no recognised exception to the alternate remedy rule is established, writ jurisdiction should not be exercised to test the correctness of the assessment order.

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