Satvik Industries Limited vs. Assistant Commissioner , Commercial Tax And 2 Others

Facts

The petitioner, Satvik Industries Limited, filed a writ petition before the High Court challenging a show cause notice issued under Section 74 of the CGST/UPGST Act, 2017. The respondent authorities included the Assistant Commissioner, Commercial Tax, and two others. The learned Standing Counsel for the State-respondents informed the Court that an order had already been passed by the assessing authority. The date of the order passed by the assessing authority was April 5, 2022. The writ petition was filed on April 19, 2022.

Held

The Court held that since an order had already been passed by the assessing authority, the writ petition challenging the show cause notice was not maintainable. The Court reasoned that the petitioner had an alternative and efficacious remedy of filing an appeal against the order dated April 5, 2022. Therefore, without entering into the merits of the case, the Court dismissed the writ petition. The operative direction was to dismiss the writ petition, leaving it open for the petitioner to file an appeal against the order dated April 5, 2022.

Key Issues

1. Whether the High Court, in its writ jurisdiction, should entertain a challenge to a show cause notice when an order has already been passed by the assessing authority, and the petitioner has an alternative remedy of appeal. The petitioner argued that the writ petition was filed to challenge the show cause notice. The respondent argued, through the learned Standing Counsel, that an order had already been passed by the assessing authority. The Court did not explicitly state the arguments of each side regarding the merits of the show cause notice or the subsequent order, as it chose not to enter into the merits.