Efficacy of statutory alternative remedy: High Court declines writ where appeal under Section 107(11) offers efficacious remedy.

Petitioner sought writ relief against cancellation of GST registration but failed to establish exceptional circumstances to bypass the statutory appeal. The court held the statutory appeal under Section 107(11) constitutes an efficacious alternative remedy because the Appellate Authority has wide inquiry and disposal powers, and emphasised that alleged breaches of natural justice require proof of specific prejudice. The petitioner did not produce primary business documents or identify prejudice; an adverse inference was available where best evidence was withheld. Disputed factual issues, including alleged fake invoices, must be examined by the Appellate Authority; the writ petition was dismissed.

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Issues: Whether the petitioner has established exceptional circumstances to justify bypassing the statutory alternative remedy of appeal under Section 107(11) of the Central Goods and Services Tax Act, 2017 and invoke the High Court's extraordinary jurisdiction under Article 226 of the Constitution of India against cancellation of GST registration.

Analysis: The Court examined Section 107(11) of the Central Goods and Services Tax Act, 2017 which empowers the Appellate Authority to make further inquiry and to confirm, modify or annul the order appealed against and expressly bars remand to the adjudicating authority. Given the wider inquiry and disposal powers conferred on the Appellate Authority, the statutory appeal constitutes an efficacious alternative remedy. The Court analysed the petitioner's contention of violation of principles of natural justice and the claim that department withheld documents, noting the established requirement that a claimant must demonstrate prejudice caused by any alleged breach of natural justice. The petitioner failed to produce documents showing active business or to identify specific prejudice; moreover, where a party possesses best evidence and withholds it, an adverse inference is permissible. The disputed questions of fact regarding alleged issuance of fake invoices are matters for inquiry and determination by the Appellate Authority under Section 107(11).

Conclusion: The petitioner has not made out any exceptional circumstance to bypass the alternative statutory remedy of appeal under Section 107(11) of the Central Goods and Services Tax Act, 2017; the writ petition is accordingly dismissed and the petitioner must pursue the remedy of appeal.

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