2023 (5) TMI 884 - HC - GST

Goods Transport Case: Statutory Remedies Prevail, Appellate Path Opened for GST Invoice Dispute Resolution

GST dispute involving goods transportation and tax invoice mismatch. HC found alternate statutory remedies available under GST Act. Directed petitioner to ... Jurisdiction of writ under Article 226 where alternate statutory remedy exists - statutory appeal under Section 107 of the GST Act - provisional release under Section 129(1) of the GST Act - detention and penalty under Section 129 of the GST Act - interim relief by Appellate Authority on terms including bank guaranteeJurisdiction of writ under Article 226 where alternate statutory remedy exists - detention and penalty under Section 129 of the GST Act - Maintainability of the writ petition challenging the detention and penalty when an alternate statutory remedy under Section 107 of the GST Act is available and disputed questions of fact remain. - HELD THAT: - The Court held that the objections raised by the petitioner involved disputed questions of fact concerning the transaction and delivery address which the adjudicating authority had considered. In view of the availability of a specific statutory remedy under Section 107 of the GST Act, the matter was not appropriate for final adjudication in writ jurisdiction under Article 226; the Court declined to go into the factual controversies in the present petition and treated the objections as matters to be decided in the statutory appeal. [Paras 7]Writ petitioner's challenge on merits was not entertained; petitioner directed to avail the statutory appeal under Section 107.Statutory appeal under Section 107 of the GST Act - provisional release under Section 129(1) of the GST Act - interim relief by Appellate Authority on terms including bank guarantee - Procedure and timelines for interim relief and disposal of the statutory appeal arising from detention under Section 129. - HELD THAT: - The Court granted liberty to the petitioner to file the statutory appeal within ten days and directed the Statutory Appellate Authority to decide the appeal on merits without imposing limitation for the period covered by this order. The petitioner was also permitted to move an application for provisional release of the goods and vehicle under Section 129(1). The Appropriate Authority was directed to take up such interim application immediately and pass orders within one week; the Appellate Authority was directed to dispose of the appeal within four weeks. The Court further permitted the Appellate Authority to release the goods and vehicle on terms, including accepting a bank guarantee for the penalty amount, without prejudice to the rights in the main appeal, and emphasised emergent and expeditious disposal. [Paras 8]Liberty to file appeal within ten days; interim application under Section 129(1) to be decided within one week; appellate disposal within four weeks; interim release permissible on appropriate terms.Final Conclusion: Writ petition disposed of by refusing to adjudicate disputed factual issues in writ jurisdiction and directing the petitioner to pursue the statutory appeal under Section 107; directions issued for prompt consideration of interim release under Section 129(1) and expedited disposal of the appeal by the Appellate Authority. Issues:The judgment involves challenging impugned proceedings in ADJ No.04/2023-24/Adjudication-2 and Form GST MOV-09- Order of Demand of Tax and Penalty in GST MOV Order No.04/2023-24/Adjudication-2, seeking to quash them as illegal, arbitrary, and void ab initio.Facts:The petitioner, a registered dealer under the GST Act, entered into a transaction for supplying goods to a customer through a 'Bill to' – 'Ship to' arrangement. Despite providing all necessary details in tax invoices and e-way bills, the goods vehicle was intercepted by the first respondent on the grounds of a mismatch in the delivery address. Subsequently, a penalty of Rs.3,51,000/- was levied, leading to the present challenge through a Writ Petition.Arguments:The petitioner's counsel cited a previous judgment with similar facts where the impugned order was quashed, emphasizing the need for relief in the current case. In response, the Government Advocate referred to another court order directing the petitioner to explore alternate remedies under Section 107 of the GST Act.Judgment:The Court noted the similarity between the previous cases and the present one, highlighting that disputed factual questions cannot be addressed in a Writ Petition under Article 226 when alternate remedies are available under the law. Consequently, the Writ Petition was disposed of with the following directions:- The petitioner can file a statutory appeal within ten days, with no limitation on the appeal against the Writ Petition.- The petitioner can seek provisional release of the detained goods and vehicle under Section 129(1) of the GST Act.- The Appropriate Authority must decide on the interim application promptly and the Statutory Appellate Authority should consider releasing the goods and vehicle within four weeks.- Any application under Section 129(6) of the GST Act will be expedited without delay. No costs were awarded, and connected miscellaneous petitions were closed.