HC dismisses writ petition on tax attachment, directs petitioner to pursue statutory appeal with 25% pre-deposit

The HC dismissed a writ petition challenging attachment order and bank attachment notice, ruling that petitioner had an efficacious alternative remedy through statutory appeal process. The court declined to exercise writ jurisdiction when proper appellate remedy was available. However, HC granted liberty to petitioner to file appeal before appellate authority within four weeks with 25% pre-deposit of disputed tax (15% additional to statutory 10%). The appellate authority was directed to accept the appeal despite limitation period expiry, provided the enhanced pre-deposit condition was met, and dispose of the matter expeditiously on merits in accordance with law.

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ISSUES:

Whether the impugned order-in-original and consequential bank attachment notice were passed in violation of principles of natural justice.Whether the writ petition is maintainable when an efficacious remedy by way of appeal exists before the appellate authority.Whether the appellate authority can be directed to condone delay in filing appeal and admit the appeal without insisting upon the period of limitation.Whether the petitioner can be permitted to withdraw funds from the bank account to comply with the pre-deposit requirement for filing the appeal.

RULINGS / HOLDINGS:

The impugned order-in-original was passed without giving any opportunity of personal hearing to the petitioner, which is a clear violation of principles of natural justice.The writ petition is not maintainable as the petitioner has an efficacious remedy by way of appeal before the appellate authority and has failed to avail the same.The petitioner is permitted to file an appeal before the appellate authority within four weeks and the appellate authority is directed to take the appeal on record without insisting upon the period of limitation, subject to the petitioner depositing 25% of the disputed tax (15% in addition to the statutory 10%).The respondents are directed to allow the petitioner to withdraw amounts from the bank account to the extent of 25% of the disputed tax for the purpose of pre-deposit, and upon proof of such payment, to defreeze the bank account forthwith.

RATIONALE:

The Court applied the principles of natural justice requiring an opportunity of hearing before passing adverse orders.The statutory framework provides an appellate remedy against assessment orders, which is considered an efficacious remedy, thereby rendering the writ petition inappropriate.The Court exercised its discretion to condone delay and relax limitation requirements to enable substantive adjudication on merits, balancing procedural compliance with substantive justice.The direction to permit withdrawal of funds for pre-deposit aligns with procedural fairness and ensures the petitioner's ability to comply with statutory pre-deposit conditions for appeal filing.

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