The Works Company vs. State Of Bihar
Held
The Court held that it was not inclined to invoke its extraordinary jurisdiction under Article 226 of the Constitution of India. The reasoning was based on the fact that the petitioner had an alternative and efficacious remedy available by way of an appeal to the Appellate Authority under Section 107 of the Bihar Goods and Services Tax Act, 2017. The order under challenge was passed on 08.07.2024, and the writ petition was filed on 30.10.2024, meaning the period for filing an appeal had not necessarily expired, or at least the statutory mechanism was available. The ratio decidendi is that High Courts generally refrain from exercising writ jurisdiction when a statutory alternative remedy is available, unless there are exceptional circumstances not present in this case. The Court directed that if the petitioner files an appeal within two weeks from the date of the order, it shall be considered on its merits, without taking into account the delay aspect. No issue was expressly left undecided.
Facts
The petitioner, The Works Company, a partnership firm, filed a writ petition before the Patna High Court challenging an order dated 08.07.2024, which pertains to the disallowance of Input Tax Credit. The petitioner's grievance is that this order was passed by the Assistant Commissioner of State Tax, Patna Central -1. The writ petition was filed on 30.10.2024. The petitioner's claim is regarding the disallowance of Input Tax Credit. The Court noted that as of the date of filing the writ petition, the petitioner had the option to approach the Appellate Authority under Section 107 of the Bihar Goods and Services Tax Act, 2017.
Key Issues
1. Whether the petitioner, having an alternative remedy available under Section 107 of the Bihar Goods and Services Tax Act, 2017, is precluded from invoking the extraordinary writ jurisdiction of the High Court under Article 226 of the Constitution of India for challenging an order disallowing Input Tax Credit. Petitioner's Argument: The petitioner's implicit argument, by filing a writ petition, is that the High Court's intervention is warranted despite the availability of an alternative remedy. No specific arguments were recorded in the judgment regarding the petitioner's contention on this point. Respondent's Argument: The respondent's implicit argument, as reflected in the Court's decision, is that the existence of a statutory appellate remedy under Section 107 of the Bihar Goods and Services Tax Act, 2017, makes it inappropriate for the High Court to exercise its extraordinary jurisdiction at this stage.
Sections Cited
Section 107
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.17555 of 2024 ====================================================== The Works Company a Partnership Firm having its office at C/o 501, Kamlini Ranjan Apartment, Ashiana Nagar, Phulwari, Patna, Bihar- 800025 through its Partner Vikram Srivastava (Male, aged about 37 years) son of Ranjeet Kumar resident of 501, Kamlini Ranjan Apartment, Ashiana Nagar, Phulwari, Patna- 800025, Bihar. ... ... Petitioner/s Versus
State of Bihar through Commissioner of State Tax, Bihar, Patna having its office at Kar Bhawan Birchand Patel Marg, Patna- 800001. 2. Asst. Commissioner of State Tax, Patna Central -1 having its office at Anta Ghat, Patna, 800001. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr.D.V.Pathy, Advocate Mr. Sadashiv Tiwary, Advocate Ms. Prachi Pallavi, Advocate Mr. Hiresh Karan, Advocate For the Respondent/s : Mr. Vivek Prasad, Government Pleader 7 Ms. Runa, Advocate ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE PARTHA SARTH
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.