TaxTMI 
TaxTMI 
2021 (6) TMI 773
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....the provisions in this regard are unambiguous. The petitioners have enabled the provisions with reference to the zero rated transactions, more specifically, the explanation for zero rated transaction under Section 21 of the PVAT Act, which denotes zero rated transactions and further provisions under the Central Sales Tax Act, 1956. Relying on the provisions under the PVAT Act, 2007 and the Central Sales Tax Act, 1956, the learned Senior Counsel is of the opinion that the petitioners are entitled for the benefit of Input Tax Credit in respect of the transactions made by them. 3.The learned Senior Counsel appearing on behalf of the respondent objected the said contentions by stating that admittedly the writ petitioners have not exhausted the appeal remedies as provided under the provisions of the PVAT Act. Section 47 provides an appeal to the appellate Assistant Commissioner and Section 49 contemplates appeal to the Appellate Tribunal. The two appellate forums are created in the provisions of the PVAT Act, to redress the grievances of the aggrieved persons. Section 51 of the Act provides an appeal to the High Court. Thus, without exhausting the remedies contemplated under the scheme....
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....ade payment of pre-deposit for filing an appeal which is contemplated under the procedures. However, the High Court need not encourage such practise. Respecting the institutions created under the legislations is of paramount importance. The High Court cannot undermine the importance of the appellate forum created under the statute, unless there are compelling reasons. Regarding the appellate remedy to be exhausted, this Court has elaborately considered the principles in judgment dated 15.04.2021 in W.P.Nos.3144 of 2016 & etc. batch and the relevant paragraphs are extracted hereunder: "7.In order to avoid the Pre-Deposit, which is contemplated under the Statute, the practice of filing writ petitions is prevailing in the High Court and the High Court cannot encourage such practice and the appellate remedy contemplated under the Act is to be exhausted in all circumstances and only under extraordinary circumstances, in order to mitigate injustice, the High Court can intervene and not otherwise. Such power of dispensing with the appeal remedy is to be exercised sparingly and not in a routine manner. The learned Senior Standing Counsels reiterated that, in respect of the writ petitions....
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....ated with reference to the documents and evidences to be produced and the scope of the writ petition under Article 226 of the Constitution of India cannot be expanded so as to exercise the powers of the appellate authority in the matter of examination or scrutiny of original documents and evidences produced by the respective parties. The very purpose of the statutory appeal is to scrutinize the orders passed by the original authorities, and therefore, the legislative intention in this regard is to be scrupulously followed in the mater of adjudication of merits with reference to the documents and evidences. 12.In common parlance, Statutes contain appeal provisions. In some of the Statutes, there are two-tier appeal provisions in order to ensure that the facts, grounds, evidences are appreciated and the grievances are redressed in the manner known to law. Such appeal provisions are provided with the legislative intention to provide remedy to the aggrieved persons. The High Court, in normal circumstances, would not interfere nor dispense with the appellate remedy. 13.The High Court cannot adjudicate the facts and merits with reference to documents and evidences. Trial is not ent....
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.... cause notice itself was by an improper authority. Thus, by citing the said finding, the appellate remedy otherwise provided under the Statute cannot be dispensed with, and in the event of accepting the said contention, in all such cases, every litigant will approach the High Court by way of writ petition bypassing the appellate remedy, which is not desirable and cannot be accepted. As observed earlier, Institutional respect is of paramount importance. Even the point of jurisdiction, limitation, error apparent on the face of the record, are on merits and all are to be adjudicated before the appellate authority and the appellate authority, more specifically, the Appellate Tribunal or the Commissioner (Appeals), as the case may be, is empowered to adjudicate all such legal grounds raised by the respective parties and make a finding on merits. Thus, usurping the powers of the appellate authorities by the High Court by invoking its powers under Article 226 of the Constitution of India is certainly unwarranted. The parties must be provided an opportunity to approach the appropriate authorities for redressal of their grievances in the manner known to law. In the event of entertaining all....