M.B.S.Impex Private Limited vs. The Commissioner Of Commercial Taxes

Held

The Court held that a writ petition can only be entertained on two established grounds: (a) violation of the principles of natural justice, and (b) an error of jurisdiction. The Court found that both these grounds were absent in the present cases. The petitioner's grievance that the Assessing Officer failed to consider available records or apply proper application of mind to the facts was deemed a matter that could only be agitated in a proper statutory appeal. Therefore, the Court dismissed the writ petitions. However, to provide relief, the Court granted the petitioner liberty to approach the statutory appellate authority within two weeks from the date of the order. The Court further directed that the period during which the writ petitions were pending should be excluded for the purpose of computing the period of limitation or delay for filing the statutory appeal. The impugned orders were ordered to be returned to the petitioner to facilitate the filing of the appeal.

Facts

The petitioner, M.B.S. Impex Private Limited, filed two writ petitions challenging orders of assessment passed by the Assessing Officer on May 22, 2017, and May 20, 2017. These orders pertained to the periods April 2014 to March 2016 and April 2013 to March 2014, respectively. The petitioner's primary grievance was that the Assessing Officer disallowed input tax credit without properly considering the records already available with the Department. The writ petitions were filed in July 2017, approximately two months after the impugned orders were passed.

Key Issues

1. Whether the High Court, in its writ jurisdiction, can entertain a challenge to an order of assessment based on the ground that the Assessing Officer failed to consider available records or apply proper application of mind to the facts. This issue turns on the scope of writ jurisdiction under Article 226 of the Constitution of India. Petitioner's contention: The petitioner argued that the impugned orders were passed without proper consideration and application of mind to the facts on record, leading to the disallowance of input tax credit. Revenue's contention: The respondents, represented by the Commercial Tax Department, contended that a writ petition can only be entertained on established grounds of violation of principles of natural justice or an error of jurisdiction. They argued that the petitioner's grievance regarding non-consideration of records falls outside these grounds and should be pursued through a statutory appeal.