2025 (9) TMI 52 - HC - GST

Petition dismissed challenging CGST/SGST tax, interest and penalty; statutory appeal to be filed within 60 days, entertained despite delay

Roshan Sharma, sole proprietor of M/s. ARS Metals Versus Deputy Commissioner of Revenue, State Tax, Strand Road, Chinabazar & Rajakatra Charge & Anr.

HC dismissed the petition challenging levy of tax, interest and penalty under the C.G.S.T./W.B.G.S.T. Act, 2017, holding the statutory appellate remedy to ... Maintainability of petition - availability of alternative remedy - levy of tax, interest and penalty under the provisions of the C.G.S.T./W.B.G.S.T. Act, 2017 - HELD THAT:- It is not persuaded to exercise any discretion in the matter, since, the appellate remedy provided under the Act, is not only an effective remedy, but an efficacious remedy as well. The appellate authority will be able to appreciate the factual position, if necessary, it can call for the records and also direct its office to access the Fastag Portal etc. and all such grounds raised by the appellant can be canvassed before the appellate authority, which will be considered by the appellate authority after giving an effective opportunity of personal hearing to the appellant. Considering the facts and circumstances of the case, the appellant should not be permitted to bypass the statutory appellate remedy - it is not inclined to interfere with the order passed by the learned Single Bench. Appeal dismissed with a direction to the appellant to file a statutory appeal before the appellate authority and if such an appeal is filed within a period of 60 days from the date of receipt of server copy of this judgment and order, the appellate authority shall entertain the appeal without reference to limitation and subject to compliance of other conditions upon the appellant. ISSUES PRESENTED AND CONSIDERED 1. Whether the Court should exercise discretionary writ jurisdiction to interfere with an adjudication order under the C.G.S.T./W.B.G.S.T. Act, 2017 when an effective and efficacious statutory appellate remedy exists. 2. Whether and to what extent the adjudicating authority/Department is obliged to cooperate by providing access to or particulars from the Fastag Portal (movement-related electronic records) to an assessee who possesses limited movement documents. 3. Whether disputed factual questions (including reliance on cross-examination statements of suppliers and movement-records) require adjudication in a writ proceeding or are more appropriately decided by the statutory appellate authority on a de novo/original appellate consideration. ISSUE-WISE DETAILED ANALYSIS Issue 1 - Exercise of writ jurisdiction vs. statutory appellate remedy Legal framework: The remedy scheme under the C.G.S.T./W.B.G.S.T. Act, 2017 provides an appeal against adjudication orders to the appellate authority; writ jurisdiction is discretionary and is to be exercised sparingly where statutory remedies are efficacious or adequate. Precedent Treatment: No specific precedents were cited or relied upon in the judgment; the Court applied established discretionary principles governing writ jurisdiction in the presence of an effective statutory appeal. Interpretation and reasoning: The Court found the statutory appellate remedy to be not only effective but also efficacious. The appellate authority is better placed to appreciate factual matrices, call for records, access electronic portals (such as Fastag), and provide an effective opportunity of personal hearing. Because the core dispute involves facts that are contested and require factual adjudication, the writ forum was deemed inappropriate to supplant the appellate process. Ratio vs. Obiter: Ratio - Where an effective and efficacious statutory appellate remedy exists, and the matter involves disputed factual questions, the Court will not ordinarily exercise writ jurisdiction to interfere with an adjudication order. Obiter - None significant on this point beyond the applied principle. Conclusion: The Court declined to exercise its discretionary writ jurisdiction and refused to interfere with the adjudication order, directing the appellant to avail the statutory appeal. Issue 2 - Obligation of Department to provide/access Fastag Portal details Legal framework: Administrative cooperation and evidentiary access concerning electronic movement records (Fastag Portal) fall within the appellate authority's powers to call for records and access relevant portals in the course of adjudication/appeal. Precedent Treatment: No earlier authority was invoked to delineate specific duties on the Department to produce Fastag details in the writ forum; the Court treated the matter as one suitable for appellate inquiry rather than resolving the obligation in the writ petition. Interpretation and reasoning: The Court accepted the appellant's contention that Fastag details may be vital and acknowledged the appellant's lack of direct access to the Fastag Portal. However, rather than ordering coercive production at the writ stage, the Court directed that the appellate authority, when seized of the statutory appeal, may call for and access Fastag records and consider any specific request made by the appellant regarding such details. The Court emphasized that the appellate authority can and should take appropriate steps to examine electronic evidence and direct cooperation from the Department if necessary. Ratio vs. Obiter: Obiter - The statement that Fastag details are 'very vital' and that the appellant may make a specific request before the appellate authority is persuasive guidance but not a binding adjudication of a specific duty in the writ context. Ratio - The appellate authority is the proper forum to seek production/access of Fastag records and to direct departmental cooperation. Conclusion: No writ relief was granted to compel Fastag disclosure; instead, the Court directed that the appellate authority should entertain and consider specific requests regarding Fastag details and take steps to obtain/access such records in accordance with law. Issue 3 - Appropriate forum for resolution of disputed factual issues including cross-examination and supplier statements Legal framework: Writ courts refrain from resolving intricate factual disputes when a statutory appeal is available that permits a full factual re-examination and affords an opportunity for personal hearing; appellate authorities can call for records and re-evaluate evidence including cross-examination testimony. Precedent Treatment: The judgment does not invoke or distinguish prior authorities; it applies the general principle that factual controversies are more appropriately resolved on appeal rather than by writ. Interpretation and reasoning: The Court observed that the correctness of the adjudication involves factual issues that are contested and often hinge on evidence (documentary and testimonial) such as supplier statements and movement records. The appellate authority is equipped to re-adjudicate these factual disputes, summon records, and provide an effective personal hearing. Hence, the Court declined to undertake fact-finding or to re-appraise evidence in the writ petition. Ratio vs. Obiter: Ratio - Disputed factual controversies arising from adjudication orders should ordinarily be addressed by the statutory appellate authority rather than by exercise of writ jurisdiction. Obiter - The appellate authority's ability to access electronic portals and records was noted as a supporting reason. Conclusion: The Court refrained from resolving factual disputes in the writ petition and required the appellant to pursue the statutory appeal where such factual matters can be properly adjudicated. Ancillary Directions and Procedural Relief Legal framework: Courts may grant limited procedural concessions to facilitate the exercise of statutory remedies where refusal to interfere is coupled with directions to prevent denial of justice by technical limitations. Interpretation and reasoning: To prevent prejudice caused by limitation, the Court directed that if the statutory appeal is filed within 60 days from receipt of the certified copy of the judgment, the appellate authority shall entertain the appeal without reference to limitation, subject to compliance with other legal conditions. The appellate authority was directed to consider all grounds and documents, afford a personal hearing to the authorized representative, and pass a reasoned order on merits and in accordance with law. No costs were awarded. Ratio vs. Obiter: Ratio - Where a writ is declined in favor of statutory appeal, the Court may grant time-extension or relief from limitation to enable effective exercise of the appellate remedy; the appellate authority must consider all grounds and evidence and provide a reasoned decision after hearing. Conclusion: The appellant is permitted to file the statutory appeal within the specified period with benefit of extension-of-limitation relief as directed; the appellate authority is mandated to consider the matter afresh and decide on merits after hearing and record collection, including any Fastag-related requests.