2021 (12) TMI 170 - HC - GST

Court emphasizes appeal remedy over writ petition for challenging tax orders. Exhaust statutory remedies before judicial intervention.

Gulam Rasool Khan Versus Union of India

The High Court dismissed the writ petition challenging an order under the CGST and Telangana GST Acts, emphasizing the availability of an appeal remedy ... Input tax credit - basic ground of challenge to the impugned order in original is that the assessee is being compelled to pay for output supply without any legal basis - HELD THAT:- It is because of such payment that assessee could not make the requisite payment under the CGST as well as SGST. The assessee can agitate all such grounds before the appellate authority. No case is made out for entertaining the writ petition challenging the order in original when there is alternative remedy provided under the statute - petition dismissed. Issues:Challenge to legality and validity of the order in original passed by the Deputy Commissioner, Begum Bazar GST Division under CGST and Telangana GST Acts. Lack of indication of the relationship between the petitioner and the assessee. Availability of alternative remedy under Section 107 of the CGST Act for the assessee to prefer an appeal.Analysis:The petitioner challenged the order in original passed by the Deputy Commissioner, Begum Bazar GST Division, Hyderabad, under the Central Goods and Services Tax Act, 2017 (CGST Act) and the Telangana Goods and Services Tax Act, 2017. The order confirmed an amount as CGST and SGST, along with irregularly availed input tax credit payment by M/s. Nusrath Metal Industries. The writ petition was filed by Gulam Rasool Khan, but the relationship between Khan and the assessee was not specified. The High Court noted that the assessee has the right to appeal under Section 107 of the CGST Act against the order. The primary ground of challenge was that the assessee was compelled to pay for output supply without a legal basis, leading to non-payment of requisite CGST and SGST amounts.Upon review, the Court determined that the assessee could raise all grounds before the appellate authority, indicating that there was an alternative remedy available under the statute. Consequently, the Court dismissed the writ petition, emphasizing that there was no justification for entertaining the challenge to the order in original when an appeal option existed under the law. The judgment concluded by dismissing the writ petition without any costs and also directed the dismissal of any related miscellaneous petitions.This judgment underscores the principle that when statutory provisions offer an avenue for appeal, challenging administrative orders through writ petitions may not be warranted. The Court highlighted the importance of exhausting statutory remedies before seeking judicial intervention, thereby promoting the efficiency and adherence to the established legal framework in tax matters.