Delay in challenging tax demand bars writ relief when the taxpayer participated in the original proceedings and offered no sufficient explanation.
A writ challenge to an order-in-original was declined where it was filed after about four years and the explanation for the delay was found insufficient. The HC noted that the petitioner had participated in the original proceedings and filed a reply, which weakened any attempt to reopen the tax demand through writ jurisdiction. Applying the principle against entertaining stale claims, the Court refused interference and left open any permissible statutory remedy under the Finance Act, 1994.
Issues: Whether the writ petition challenging the order-in-original was liable to be entertained despite inordinate delay, and whether the petitioner should be relegated to any statutory remedy under the Finance Act, 1994.
Analysis: The petition challenged an order-in-original pertaining to the tax period October 2014 to March 2017 after a delay of about four years. The explanation that the proprietor was not well educated and depended on an authorised representative was not accepted as sufficient, particularly because the petitioner had participated in the original proceedings and furnished a reply. The Court held that the belated challenge attracted the principle against entertaining stale writ claims, and relied on the cited precedent to decline interference. It also noted that any statutory remedy, if permissible, remained open.
Conclusion: The writ petition was not fit to be entertained on account of inordinate delay and was dismissed.
Final Conclusion: The Court declined to exercise writ jurisdiction against the impugned tax demand, leaving the petitioner to pursue any permissible statutory relief.
Ratio Decidendi: A writ petition challenging a tax demand may be declined at the threshold where there is inordinate delay and the explanation for approaching the Court belatedly is insufficient, especially when the petitioner participated in the original proceedings.
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