GST Assessment on Transferable Development Rights Must Be Challenged Through Appellate Remedies First, Not Direct Writ Petition

The HC dismissed a writ petition challenging GST assessment on Transferable Development Rights, directing the petitioner to pursue available appellate remedies first. The petitioner argued the tax should be paid by landowners rather than developers and claimed procedural violations. The Court found no exceptional circumstances warranting direct HC intervention under Article 226, noting that the appellate authority could adequately address the technical tax issues. The petition was disposed of with liberty to approach the appellate forum, with no costs awarded.

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Issues:
Challenge to assessment order for tax on Transferable Development Rights under GST Act, 2017 and APGST Act, 2017.

Analysis:
The petitioner sought relief through a writ to set aside the assessment order, arguing it was illegal, arbitrary, against natural justice, and contrary to relevant laws and notifications. The petitioner contended that tax on Transferable Development Rights should be paid by the landowners, not the developer. The objections raised by the petitioner were allegedly not considered, and the Assessing Officer was claimed to lack jurisdiction. The Government Pleader argued that the petitioner should first seek remedy through the appellate forum before approaching the High Court.

The Court referred to a Supreme Court decision outlining conditions for approaching the High Court when alternative remedies are available. As the petitioner did not meet the specified circumstances and an effective alternative remedy existed, the Court found no need for interference. The Court emphasized the need for a detailed examination of the taxing proposal and stated that the appellate authority could address the petitioner's concerns. No significant illegality was found in the assessment order warranting the High Court's intervention under Article 226 of the Constitution.

The Court disposed of the writ petition, granting liberty to the petitioner to pursue the alternative remedy by approaching the appellate forum. No costs were awarded, and any pending miscellaneous petitions were also disposed of. The judgment highlighted the importance of exhausting alternative remedies before seeking relief through writ jurisdiction, emphasizing the role of the appellate authority in addressing specific concerns raised by the petitioner regarding the assessment order for tax on Transferable Development Rights.

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