M/S Shri Sharma Steel Rolling Mills PVT. LTD. vs. Union Of INDIA
Held
The Court held that the writ petition is not maintainable in the present form because the petitioner has an alternative statutory remedy available under Section 107 of the CGST Act, 2017. The Court noted that Section 107 provides for an appeal to the Appellate Authority against any decision or order passed by an adjudicating authority. The reasoning was that the petitioner should exhaust this statutory remedy before approaching the High Court under Article 226 of the Constitution. The Court dismissed the writ petition with liberty to the petitioner to raise all legal and factual grounds before the appellate authority. The Court further directed that the time taken by the petitioner in prosecuting the writ petition before the High Court shall be excluded by the Appellate Authority while calculating the limitation period for filing the appeal, provided the appeal is filed within 30 days of the instant order being uploaded. No issue was expressly left undecided.
Facts
M/s Shri Sharma Steel Rolling Mills Pvt. Ltd. (the petitioner) filed a writ petition challenging an order in original dated January 16, 2025, and a summary of the order dated January 17, 2025, passed by the Assistant Commissioner, CGST, Division A, Jaipur. These orders raised a GST demand of Rs. 2,19,01,564/- for the Financial Year 2017-2018. The demand was based on allegations of wrongful availment and utilization of Input Tax Credit by the petitioner. The respondents, including the Union of India and the State of Rajasthan, objected to the maintainability of the writ petition, arguing that the petitioner had not availed the alternative statutory remedy of appeal under Section 107 of the CGST Act, 2017.
Key Issues
1. Whether the writ petition is maintainable before the High Court when an alternative statutory remedy of appeal under Section 107 of the CGST Act, 2017, is available to the petitioner? The petitioner, M/s Shri Sharma Steel Rolling Mills Pvt. Ltd., did not explicitly argue on the maintainability of the writ petition. However, by filing the petition, it implicitly sought direct intervention from the High Court. The respondents, including the Union of India and the State of Rajasthan, argued that the writ petition is not maintainable. They contended that the petitioner has an efficacious alternative remedy by way of an appeal to the Appellate Authority as provided under Section 107 of the CGST Act, 2017, against the impugned order. They relied on the statutory provision of Section 107, which outlines the appellate mechanism.
Sections Cited
Section 107, Article 226
AI-generated summary — verify with the full judgment below
[2026:RJ-JP:27440-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 5770/2025 URN: CW / 13782U / 2025 M/s Shri Sharma Steel Rolling Mills Pvt. Ltd., 90A, B, C 91-B, Industrial Area, Jhotwara, Jaipur, Rajasthan-302012 Through Its Director Mr. Vikas Sharma, S/o Mr. Ghasi Lal Sharma, Aged About 30 Years, R/o 78, Jagannathapuri, Kalwar Road, Jhotwara, Jaipur, Rajasthan-302012 ----Petitioner Versus
Union Of India, Through The Secretary, Department Of Revenue, Ministry Of Finance, North Block, New Delhi
The Assistant Commissioner, CGST Division-A, CP-21 To 23, Road No. 1 D, Vishwakarma Industrial Area, Jaipur- 302013
The Assistant Commissioner, (Anti-Evasion Branch), CGST And Central Excise Commissionerate, NCR Building, Statue Circle, C-Scheme, Jaipur - 302005
State Of Rajasthan, Through The Finance Secretary (Revenue), Government Secretariat, Jaipur-302005
The Chief Commissioner, Commercial Tax Department, Kar Bhawan, Ambedkar Circle, Jaipur-302004 ----Respondents For Petitioner(s) : Mr. Ravi Gupta, Adv. For Respondent(s) : Mr. Ajay Shukla, AAG, Mr. Shivam Sharma, Adv. Ms. Jyoti Sharma, Adv. Ms. Mahi Yadav, AAG Ms. Chels
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