Associated Road Carriers LTD. Through Its Authorised Person Prakash Dhaniram Arya vs. State Of Gujarat

Held

The Court held that the writ applicant has a statutory remedy of preferring an appeal under Section 107 of the Gujarat State Goods and Services Tax Act, 2017, against the impugned order. The Court reasoned that since a clear alternative remedy is available, the writ application under Article 226 of the Constitution should not be entertained at this stage. The ratio decidendi is that writ jurisdiction should not be exercised when an efficacious alternative remedy exists. The Court directed the writ applicant to avail the statutory appeal. It further clarified that if the statutory appeal is not disposed of promptly, the petitioner can file an application for interim release of the conveyance under Section 67(6) of the Act, which shall be decided in accordance with law at the earliest. No specific issue was left undecided.

Facts

The petitioner, Associated Road Carriers Ltd., engaged in the transport business, filed a writ application challenging an order dated 07.06.2020 passed under Section 129 of the CGST Act. The order imposed a tax and penalty of Rs. 2,02,974/-. The vehicle and consignments were seized while in transit because the driver allegedly could not produce a valid E-way bill. A show cause notice was issued, followed by the impugned order. The petitioner sought to quash this order and secure the release of the vehicle and consignments.

Key Issues

1. Whether the writ applicant has an alternative statutory remedy against the impugned order passed under Section 129 of the CGST Act? Petitioner's contention: The petitioner approached the High Court by way of a writ petition, implying a challenge to the order. The specific arguments made by the petitioner's counsel are not detailed in the judgment, beyond their appearance and the reliefs sought. Revenue's contention: The State, through the Government Pleader, pointed out the availability of a statutory appeal under Section 107 of the Gujarat State Goods and Services Tax Act, 2017, as an alternative remedy.