Vsp Udyog Private Limited And Anr. vs. Union Of INDIA And Ors.
Original PDF →Facts
The petitioners, VSP Udyog Private Limited & Anr., challenged four orders in original passed under the Central Excise Act, 1944, two dated March 14, 2024, and two dated March 19, 2024. The petitioners had also filed appeals before the Commissioner of Appeals. Due to the pendency of the writ petition, they did not make the required pre-deposit for these appeals. Subsequently, on September 30, 2024, they sought to withdraw these appeals. The revenue authorities contended that the writ petition should not be entertained without exhausting the statutory remedy. The Court noted that no order had been passed by the Commissioner of Appeals on the withdrawal requests.
Held
The Court held that the petitioners should be permitted to withdraw their letters dated September 30, 2024, seeking withdrawal of their appeals before the Commissioner of Appeals. The Court reasoned that this would allow the petitioners to pursue their statutory remedy and avoid rendering them remediless. The Court directed the Commissioner of Appeals to restore the appeals, if necessary, and hear and dispose of them on merits, subject to the petitioners complying with statutory formalities. The Court also noted that the petitioners should apply before the Commissioner of Appeals within four weeks from the date of the order. The Court did not decide the merits of the original orders under challenge, as the matter was being remitted to the statutory appellate authority.
Key Issues
1. Whether the High Court, in its extraordinary writ jurisdiction, should entertain a writ petition when the petitioner has not exhausted the statutory remedy of appeal before the Commissioner of Appeals, as per the contentions of the revenue authorities. 2. Whether the petitioners should be permitted to withdraw their letters dated September 30, 2024, seeking withdrawal of their appeals before the Commissioner of Appeals, to enable them to pursue those appeals, as submitted by the petitioners. Contentions: Petitioner: Submitted that they are ready and willing to pursue the appeals before the Commissioner of Appeals, provided they are permitted to withdraw their communications dated September 30, 2024, seeking withdrawal of the appeals. Revenue/State: Contended that the High Court, in exercise of its extraordinary writ jurisdiction, should not entertain the writ petition without the petitioners first exhausting their statutory remedy.
Sections Cited
Central Excise Act, 1944
AI-generated summary — verify with the full judgment below
19 21.02.2025 sb Ct 5
IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURI ICTION APPELLATE SIDE
WPA 18683 of 2024 With CAN 1 of 2025 And CAN 2 of 2025
VSP Udyog Private Limited & Anr. Versus Union of India & Ors.
Mr. Kumarjit Banerjee
Mr. Sanchari Chakraborty
Ms. Akanksha Chowdhurty
… For the petitioners.
Mr. Prithu Dudhoria
… For Union of India.
Mr. Vipul Kundalia, Sr. Advocate
Mr. Tapan Bhanja
Mr. Dhirodatto Chaudhuri
… For the CGST authorities.
Challenging four several orders in original passed under the provisions of Central Excise Act, 1944, two of which are dated 14th March, 2024 and the other two are dated 19th March, 2024, the instant writ petition has been filed.
Since, it appears that the petitioners have also invoked the statutory remedy and have filed appeals before the Commissions of Appeals and though it is contended that by reasons of pendency of the writ petitioin, the petitioners did not put in the pre-deposit as is required for maintaining such appeals and had later by communications all dated 30th September, 2024 sought
2 for leave to withdraw such appeal, as would appear from the supplementary affidavit filed in Court today, which is taken on record, and noting the submissions made by Mr. Bhanja, learned advocate led by Mr. Vipul Kundalia, learned senior advocate, that this Hon’ble Court in exercise of its extraordinary writ juri iction should not entertain the writ petition, without the petitioners first exhausting their statutory remedy, I am of the view that the petitioners should, at this stage, proceed and exhaust it remedy before the Commissioner of Appeals. Although, there appears to be four letters issued by the petitioners addressed to the Commissioner of Appeals all dated 30th September, 2024 seeking withdrawal of the appeal, no order appears to have been passed by the Commissioner of Appeals thereon.
Be that as it may, considering the fact that the petitioners had already applied before the statutory authority by filing appeals and at this stage since, Mr. Banerjee learned advocate representing the petitioners would submit that the petitioners are ready and willing to pursue the aforesaid appeal provided the communications dated 30th September, 2024 are permitted to be withdrawn, I am of the view that in the fitness of things and not to render the petitioners remediless, the petitioners should be permitted to
3 pursue the appeal filed by them. Accordingly, I permit the petitioners to withdraw the letters dated 30th September, 2024. 4. The Commissioner of Appeals is directed to if necessary by passing appropriate orders to restore the appeal, hear out and dispose of the appeals in accordance with law, subject to compliance of statutory formalities.
In the event, the petitioners apply before the Commissioner of Appeals within a period of four weeks from date, the Commissioner of Appeals, having regard to the observations made hereinabove, upon permitting the petitioner to withdraw the letters dated 30th September, 2024 and if necessary by restoring the appeals, shall hear out and dispose of the appeal on merits, subject to compliance of statutory formalities by the petitioners.
With the above observations and directions the writ petition and the connected applications are disposed of.
Urgent photostat certified copy of this order, if applied for, be made available to the parties upon compliance with the requisite formalities.
(Raja Basu Chowdhury, J.)
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.