M/S. Silica Infotech Private Limited vs. The State Of Bihar

Facts

The petitioner, M/s. Silica Infotech Private Limited, challenged an assessment order dated July 2, 2019, passed under Section 62 of the Bihar Goods & Services Tax Act, 2017. The petitioner had filed an appeal against this order, but it was dismissed on February 28, 2020, due to being filed beyond the time limit prescribed under Section 107(4) of the Bihar Goods and Services Tax Act, 2017. The petitioner then approached the High Court by way of a writ petition under Article 226 of the Constitution of India, seeking to challenge the assessment order. The Court noted a relevant notification issued by the Central Government.

Held

The Court acknowledged that a writ petition under Article 226 of the Constitution of India is generally not permissible for challenging an assessment order when alternative remedies exist and have not been properly availed. However, the Court took note of Notification No. 06/2023 dated March 31, 2023, issued by the Central Government on the recommendations of the GST Council. This notification provides a mechanism for filing returns, which would necessitate a redone assessment. Consequently, the Court disposed of the writ petition by granting liberty to the petitioner to comply with the aforementioned notification. The Court's reasoning hinges on the subsequent notification providing a potential path for rectifying the situation, making a direct challenge via writ less appropriate than availing the relief offered by the notification.

Key Issues

1. Whether the writ petition filed under Article 226 of the Constitution of India is maintainable to challenge an assessment order when alternative remedies were available and not properly availed. Petitioner's contention: The petitioner is before this Court challenging the assessment order under Article 226 of the Constitution of India. (Implicitly, the petitioner contends that the writ petition is maintainable, possibly due to the subsequent developments or the nature of the grievance). Revenue's contention: The revenue implicitly argues that a writ petition is not permissible in this case, as the petitioner had an appellate remedy under Section 107 of the Bihar Goods and Services Tax Act, 2017, which was dismissed due to delay. The assessment order itself is also being challenged, which typically requires exhausting statutory remedies.