2024 (6) TMI 1311 - HC - GST

Writ Appeal Resolved: Appellant Allowed to File Review Application on Jurisdictional Issues Under TNGST Act, 2017.

The HC disposed of the writ appeal, permitting the appellant to file a review application before the Single Judge. The appellant was directed to present ... Writ remedy under Article 226 vis-a -vis statutory appeal - jurisdictional challenge to assessment - cross-empowerment and assignment of officers - entertainment of writ on grounds of lack of jurisdictionWrit remedy under Article 226 vis-a -vis statutory appeal - entertainment of writ on grounds of lack of jurisdiction - Whether a writ under Article 226 challenging an assessment can be entertained despite the existence of a statutory appeal remedy where the challenge is founded on lack of jurisdiction. - HELD THAT: - The Court observed that ordinarily a statutory appeal under tax law militates against entertaining a writ petition, but recognised exceptions. Where the core contention is want of jurisdiction in the authority which passed the assessment, the writ jurisdiction may be exercised. The Court relied on the reasoning in the earlier decision in Tvl.Vardhan Infrastructure (referred to in the record) to the effect that officers not assigned to an assessee (absent cross empowerment) cannot usurp investigation or adjudication powers, and proceedings so initiated would be without jurisdiction. Because the Single Judge dismissed the writ petition on the ground of available appellate remedy without considering whether the impugned assessment was passed by an authority lacking jurisdiction, interference by the writ court on that jurisdictional ground would have been permissible had the point been raised and considered. [Paras 8, 9, 10]Held that lack of jurisdiction in the assessing authority is an exception to the bar created by the availability of a statutory appeal and, therefore, a jurisdictional challenge to an assessment can be entertained by the writ court.Cross-empowerment and assignment of officers - jurisdictional challenge to assessment - Relief to the appellant in view of the Single Judge having dismissed the writ without considering the jurisdictional challenge. - HELD THAT: - The High Court found that the Single Judge had not been given the benefit of the Tvl.Vardhan Infrastructure judgment or other authorities on cross empowerment and assignment, and therefore had not had occasion to examine whether the assessment was passed without jurisdiction. Rather than adjudicating the jurisdictional issue on merits at the appellate stage, the Court granted relief limited to procedural opportunity: liberty to place the said judgments and submissions before the Single Judge by way of a review application so that the question of jurisdiction can be considered afresh by the writ court. [Paras 5, 11]Appellant granted liberty to file a review application before the Single Judge to place on record the cited judgment(s) and contend the jurisdictional point; matter remitted to the writ court for consideration accordingly.Final Conclusion: Writ appeal disposed by granting the appellant liberty to file a review application before the Single Judge to enable consideration of the jurisdictional challenge (including reliance on the cited Tvl.Vardhan Infrastructure decision); no order as to costs. Issues:Jurisdiction of assessing authority under TNGST Act, 2017.Analysis:The Writ Appeal was filed against an order passed by the Writ Court regarding an assessment order. The Single Judge dismissed the writ petition stating that the assessee had an appeal remedy under Section 107 of the TNGST Act, 2017. However, the appellant argued that the assessment order itself was without jurisdiction. The appellant referenced a judgment in a similar case where it was held that actions by authorities not assigned to the assessee are without jurisdiction.The appellant contended that the Central GST authorities should not interfere when an assessee is assigned to State Authorities. The Court noted that the issue of jurisdiction was not raised before the writ Court, so it could not be considered at the appellate stage. However, the Court acknowledged that challenges to assessment orders based on cross-jurisdiction issues can be entertained by writ Courts. The Court emphasized the importance of bringing relevant judgments on jurisdiction to the notice of the Court for consideration.In light of the above, the Court allowed the appellant to file a review application before the Single Judge, highlighting the judgment in a similar case and any other relevant judgments on jurisdiction. The Court disposed of the writ appeal with these directions, emphasizing the need to present arguments based on jurisdiction for the consideration of the writ Court.