GST Rulings

GST | When should a Writ Petition be Filed before the Jurisdictional High Court?

PROVISION/S

If any person is aggrieved by any decision / order passed by an adjudicating authority, he can appeal to the Appellate Authority vide Section 107(1) of the Central Goods and Services Tax (CGST) Act, 2017. Such decision / order may be passed under the CGST Act / SGST Act / UTGST Act (or even IGST Act by virtue of Section 20 therein).

Instead, there are many instances where the assessee approaches the jurisdictional High Court by filing a writ petition (under Article 226 of the Constitution of India).

ISSUE/S

When a statutory remedy is available under Section 107 ibid, can the assessee approach the jurisdictional High Court by means of a writ petition?

OBSERVATIONS OF THE SUPREME COURT

The Supreme Court observed[1] that mere existence of a statutory / alternate remedy would not jeopardise the maintainability of a writ petition under Article 226 ibid. A writ petition can be entertained under exceptional circumstances like:

  • Breach of fundamental rights;
  • Violation of principles of natural justice;
  • Excess of jurisdiction; and
  • Challenge to the vires of the statute or delegated legislation.

In the instant case, a notice was served by the Department for the alleged non-compliance. Consequently, there was no violation of principles of natural justice. Similarly, no other exceptions stated supra could be established.

[1] Civil Appeal No. 5121 of 2021 dated September 03, 2021

COMMENTS / ANALYSIS

Aggrieved parties should note that a writ petition should be filed under Article 226 ibid only if the existence of any of the aforesaid circumstances can be established before the Hon’ble High Court.

Srinivasan V, Advocate

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