Tax Assessment Challenge Rejected: Statutory Appeal Under Section 107 Deemed Proper Remedy for Comprehensive Examination of Evidence

HC dismissed writ petition challenging tax assessment order, holding that statutory appeal under Section 107 of CGST/KSGST Act, 2017 is an adequate alternative remedy. Court emphasized appellate authority would thoroughly examine documents and evidence. Petitioner directed to pursue appeal process, with assurance that appeal would be decided on its merits.

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Issues involved:
The issues involved in the judgment are the impugning of an assessment order under the provisions of KSGST/CGST Act, 2017 and the availability of alternative remedy through a statutory appeal.

Impugned Assessment Order:
The petitioner, a registered dealer under the KSGST Act, filed returns for the financial year 2017-18. Discrepancies in transitional credit claimed were noticed, leading to a Show Cause Notice. It was found that the petitioner had availed CGST amount as transitional credit, but certain bills were not found or were unclear. The petitioner was asked to produce supporting documents, following which the assessment proceedings were conducted. The order disallowed a portion of the transitional credit claimed, imposing interest and penalty under the Act.

Alternative Remedy - Statutory Appeal:
The petitioner approached the Court invoking writ jurisdiction under Article 226 of the Constitution of India against the assessment order, arguing that the appeal process could be futile due to the nature of the claim. The Court disagreed, stating that the appellate authority would thoroughly examine all documents and evidence during the appeal process. The Court held that since there is a provision for filing an appeal under Section 107 of the CGST/KSGST Act, 2017, the writ petition was dismissed on the ground of the availability of an alternative remedy. However, the Court noted that if the petitioner chooses to file an appeal, it would be decided on its own merit.

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