M/S Gujarat Cooperative Milk Marketing Federation LTD. vs. State Of Rajasthan

Held

The Court held that the order passed by the Assistant Commissioner dated 5.9.2019 is an appealable order under Section 107 of the Act of 2017. Any aggrieved person is required to file an appeal before the Appellate Authority within three months. The grounds urged before the High Court can be raised before the Appellate Authority. The Court distinguished the cited judgments: Commissioner of Customs vs. Sayed Ali involved a normal appeal procedure, and the Supreme Court did not lay down that a writ petition is maintainable despite a statutory remedy. Orkay Silk Mills Limited concerned a person involved in investigation undertaking quasi-judicial duties. The Court found little substance in the petitioner's submission regarding bias of the Appellate Authority, stating that the Appellate Authority has to see the validity of the order passed by the Assistant Commissioner, and no presumption of bias can be drawn. The Court noted that in Perfetti Van Melle India Pvt. Ltd., an interim relief was considered if the appeal was to be heard, but in the present case, the petitioner had not availed the appeal remedy and could seek interim relief from the Appellate Authority. Similarly, the interim order in M/s.Godrej Sara Lee Limited did not alter the availability of the statutory remedy. Therefore, the writ petition was not entertained and was dismissed.

Facts

M/s. Gujarat Cooperative Milk Marketing Federation Ltd. (Petitioner) filed a writ petition challenging an order dated 5.9.2019 and a recovery notice dated 9.9.2019, both issued by the Assistant Commissioner (State Tax) Anti Evasion, Rajasthan. The petitioner also sought a direction that its adopted GST Tariff Heading No.401 be considered correct, and Tariff Heading No.402 not be applied. The petitioner argued that the Assistant Commissioner was not the 'proper officer' and thus lacked jurisdiction, rendering the proceedings void. The petitioner also contended that the Appellate Authority, having directed search and seizure, would be biased, making the statutory appeal an illusory remedy.

Key Issues

1. Whether the writ petition is maintainable before this Court when an alternative statutory remedy of appeal under Section 107 of the Central Goods and Services Tax Act, 2017, is available? (Question of law) Petitioner's arguments: - The Assistant Commissioner who issued the show cause notice under Sections 50 and 74 of the RGST Act, 2017, was not the 'proper officer' as required by the GST Act, as jurisdiction for GST Range-XXXI lay with the Special Circle-Rajasthan, Jaipur. Therefore, the notice was issued by an incompetent authority, making the entire proceeding non-est. - The Adjudicating Authority being the same as the issuing authority further invalidates the proceedings. - The Appellate Authority, having directed search and seizure, would be biased, rendering the appeal an illusory and ineffective remedy. Reliance was placed on Commissioner of Customs vs. Sayed Ali, Orkay Silk Mills Limited vs. M.S. Bindra, M/s.Godrej Sara Lee Limited vs. The Asst. Commissioner of Commercial Taxes & Others, and Perfetti Van Melle India Pvt. Ltd. vs. State of Rajasthan & Others. Respondents' arguments: - No specific arguments are recorded for the respondents in the provided text.