M/S.Bharti Telemedia LTD. vs. State Of Odisha

Held

The Court held that the writ petition filed directly before the High Court against the impugned show cause notices is not maintainable. The reasoning was based on the existence of an efficacious alternative remedy. The Court found merit in the objection raised by the State-opposite parties. The petitioner was directed to appear before the Joint Commissioner of Sales Tax, CT & GST, Bhubaneswar II, on 28.09.2020 and file a reply to the show cause notice dated 12.08.2020. The ratio decidendi is that when a statutory alternative remedy is available and efficacious, a writ petition should not be entertained directly by the High Court, especially at the stage of show cause notices. The Court did not decide the merits of the entry tax demand or the petitioner's liability.

Facts

M/s. Bharti Telemedia Ltd. (the petitioner) filed a writ petition challenging two show cause notices issued by the Joint Commissioner of Sales Tax, CT & GST, Bhubaneswar II. The first show cause notice, dated 12.05.2020, demanded the petitioner deposit Rs.97,27,708/- towards accrued Entry Tax and interest by 28.05.2020, threatening recovery action under Section 12(1) and penal action under Section 11(2)(ii) of the OET (Amendment) Act, 2005. The petitioner requested a one-month extension to file a reply due to COVID-19 difficulties. The second show cause notice, dated 12.08.2020, directed the petitioner to appear by 20.08.2020 to sustain their claim, failing which recovery and penal action would be initiated under the OET (Amendment) Act, 2005.

Key Issues

1. Whether the writ petition filed directly before the High Court challenging the show cause notices is maintainable, considering the availability of an alternative remedy. The petitioner contended that the show cause notices were issued without proper consideration of their difficulties caused by the pandemic and that the demands were potentially erroneous. The State-opposite parties, through the Advocate General, argued that the petitioner has an efficacious remedy by approaching the competent authority, i.e., the Joint Commissioner of Sales Tax, and filing a reply to the impugned show cause notices to present all submissions regarding their liability for the demanded entry tax and interest. They submitted that the writ petition should not be entertained on this ground.