Montecarlo Limited vs. The State Of Bihar

Held

The Court held that since the GST Tribunal is functional, the petitioner has an alternative statutory remedy under Section 112 of the GST Act. The Court reasoned that writ jurisdiction should not be exercised when an equally efficacious alternative remedy is available. Therefore, the writ petition was disposed of with liberty to the petitioner to file an appeal before the Tribunal. The Court directed that if the appeal is filed within three weeks, it shall be decided on its merits without considering any delay. The specific findings on the merits of the ITC reversal, interest, and penalty were not addressed as the Court disposed of the matter on the availability of an alternative remedy. The ratio decidendi is that writ petitions are generally not maintainable when a statutory appellate remedy is available and functional.

Facts

The petitioner, Montecarlo Limited, filed a writ application before the Patna High Court challenging an order dated 24.10.2025 passed by the Appellate Authority. This order confirmed a demand for Input Tax Credit (ITC) reversal, along with interest and penalty, under CGST and SGST. The petitioner was aggrieved by this appellate order. The State, through its counsel, informed the Court that a remedy of appeal before the GST Tribunal is available to the petitioner under Section 112 of the GST Act, and that the Tribunal is now functional. The specific tax period and the exact amount in dispute were not explicitly stated in the provided text.

Key Issues

1. Whether the petitioner has an alternative statutory remedy of appeal before the GST Tribunal, given that the Tribunal is now functional, as argued by the State. Contentions: Petitioner: The petitioner has approached this Court by way of a writ application, implying a challenge to the appellate order. The specific arguments of the petitioner against the appellate order were not recorded in the judgment. Revenue/State: The State contended that Section 112 of the GST Act provides a clear remedy of appeal to the petitioner before the GST Tribunal, which is now operational. Therefore, the writ petition is not maintainable.