M/S. Danish Industries vs. The Union Of INDIA
Held
The Court held that the writ petition was not maintainable in the first instance because the petitioner had not exhausted the alternative statutory remedy available under Section 107 of the CGST Act, 2017. The Court noted that Section 107(1) clearly provides that any person aggrieved by a decision or order passed by an adjudicating authority may appeal to the prescribed Appellate Authority within three months from the date of communication of the order. The reasoning was that statutory remedies are designed to provide a structured mechanism for resolving tax disputes, and these should generally be pursued before approaching the High Court under Article 226 of the Constitution. The Court dismissed the writ petition, granting liberty to the petitioner to file an appeal before the appellate authority. As a measure of relief, the Court directed that the time taken by the petitioner in pursuing the writ petition before the High Court would be excluded by the Appellate Authority while calculating the limitation period for entertaining the appeal.
Facts
The petitioner, M/s. Danish Industries, filed a writ petition challenging an order in original dated 28.10.2025. This order, passed by the Assistant Commissioner, State Tax, Ward-II, Circle-Bundi (respondent No. 4), confirmed a demand for recovery of short-paid tax amounting to Rs. 6,37,402/-. The demand was raised through a show cause cum demand notice dated 25.08.2025 under Section 74(9) of the CGST Act, 2017, along with equal penalty and consequential interest. The respondents objected to the maintainability of the writ petition, citing the availability of an alternative statutory remedy.
Key Issues
1. Whether the writ petition is maintainable before this Court, given the availability of an alternative statutory remedy under Section 107 of the CGST Act, 2017? The petitioner contended that the writ petition should be entertained directly. The respondents argued that the petitioner had not availed the alternative remedy of appeal under Section 107 of the CGST Act, 2017, and therefore, the writ petition was not maintainable. They relied on the statutory provision of Section 107, which provides for an appeal to the Appellate Authority against any decision or order passed by an adjudicating authority.
Sections Cited
Section 74(9), Section 107
AI-generated summary — verify with the full judgment below
[2026:RJ-JP:25745-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Civil Writ Petition No. 3479/2026 URN: CW / 7657U / 2026 M/s. Danish Industries, Ward No 12, Near Petrol Pump, Indergarh, Bundi (Raj.) Through Its Proprietor Mr. Abdul Salam S/o. Sh. Abdul Rehman Age 60 R/o Ward No 12, Indragarh, Bundi-323613 Rajasthan ----Petitioner Versus
The Union Of India, Through Secretary, Finance Department, Government Of India, New Delhi
The State Of Rajasthan, Through Principal Secretary, Finance Department, 1st Floor, Main Building, Government Secretariat, Jaipur
The Chief Commissoiner Of State Tax Commercial Tax Department, Ambedkar Circle, Jaipur
The Assistant Commissioner, State Tax, Ward-II, Circle- Bundi, Rajasthan
The State Of Rajasthan, Through Secretary, Rajasthan Mining And Land Department, Jaipur ----Respondents For Petitioner(s) : Mr. Arvind Vijay For Respondent(s) : Ms. Aditi Tank, Sr. Standing Counsel for UOI with Mr. Shubham Gupta, Ms. Mahi Yadav, AAG with Ms. Chelsi Agarwal HON'BLE MR. JUSTICE ARUN MONGA HON'BLE MR. JUSTICE MANEESH SHARMA Order 09/07/2026
The instant writ petition has been filed by the petitioner challenging the
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