Kashedi Parshuram Highways Private Limited Through Its Authorized Signatory vs. Union Of INDIA Through Ministry Of Finance And Others

Facts

The petitioner, Kashedi Parshuram Highways Private Limited, filed a writ petition before the Bombay High Court at Aurangabad challenging a show-cause notice issued under the Goods & Service Tax (GST) Act. The petitioner argued that the notice was a nullity and therefore writ jurisdiction was appropriate. The respondents, Union of India and others, contended that an alternate efficacious remedy of appeal was available to the petitioner under the GST Act and that the High Court should not entertain the writ petition, citing a Supreme Court judgment. The tax period and the specific authority issuing the show-cause notice were not explicitly detailed in the provided text, nor was the amount in dispute.

Held

The Court held that there is no dispute with the proposition that when an alternate statutory remedy of appeal is available, the petitioner must avail that remedy first before approaching the High Court. Relying on the Supreme Court judgment in The State of Maharashtra & ors. Vs. Greatship (India) Limited, the Court found that the petitioner has an alternate efficacious remedy in the nature of an appeal before the appellate authority under the GST Act. Therefore, the Court was not inclined to entertain the writ petition at that stage. The petition was dismissed on the grounds that the petitioner ought to have availed the statutory appeal mechanism first. The Court did not decide on the merits of the petitioner's argument that the show-cause notice was a nullity.

Key Issues

1. Whether the High Court should entertain a writ petition under Article 226 of the Constitution of India when an alternate efficacious remedy of appeal is available under the GST Act, especially when the petitioner argues the show-cause notice is a nullity. Petitioner's arguments: The petitioner contended that writ jurisdiction is available when the order or notice under challenge is a nullity. They relied on the Supreme Court judgment in Godrej Sara Lee Ltd. Vs. The Excise and Taxation Officer-cum-Assessing Authority & ors. and the Madras High Court judgment in KNR Srirangam Infra Pvt. Ltd. Vs. The State Tax Officer, Lalgudi Assessment Circle, Lalgudi. The petitioner also highlighted that the show-cause notice was issued after a specific Circular dated 26/6/2024 by the CBDT. Respondents' arguments: The respondents argued that when a statutory forum for redressal of grievances is created by law, particularly in a fiscal statute, a writ petition should not be entertained, thereby ignoring the statutory dispensation. They relied on the Supreme Court judgment in The State of Maharashtra & ors. Vs. Greatship (India) Limited.