Shree Shyam Inorganics Private Limited And Another vs. State Of West Bengal And Ors.
Original PDF →Facts
The petitioners, Shree Shyam Inorganics Pvt. Ltd. & Anr., challenged an order passed under Section 129(3) of the State GST Act on February 16, 2022. This order demanded payment within 15 days. The petitioners furnished a bank guarantee and bond to secure the release of their goods. However, they contend that the goods were received in a damaged condition and were commercially unusable. The State, represented by its counsel, denied this assertion. The writ petition was filed before the High Court.
Held
The High Court held that the impugned order dated February 16, 2022, is an appealable order under the Statute. It further held that there is no bar to the Appellate Authority adjudicating the nature of the dispute involved. Consequently, the Court was not inclined to entertain the writ petition on the ground of the availability of an alternative remedy. The Court clarified that the dismissal was solely on the basis of the alternative remedy and that the merits of the case were not examined. The ratio decidendi is that statutory remedies must be exhausted before approaching the High Court under its writ jurisdiction, especially when the statute provides for an appeal and the appellate forum is competent to decide the issues.
Key Issues
1. Whether the High Court should entertain a writ petition challenging an order passed under Section 129(3) of the State GST Act when an alternative statutory remedy of appeal is available. The petitioners argued for the entertainment of the writ petition, likely on grounds of the alleged damaged condition of the goods rendering them commercially unusable, implying a failure of the statutory process. The respondents (State of West Bengal & Ors.) contended that the impugned order is appealable under the statute and that the Appellate Authority is capable of adjudicating the dispute. They relied on the principle of alternative remedy.
Sections Cited
Section 129(3)
AI-generated summary — verify with the full judgment below
2022 ks WPA 4703 of 2022 sl. 21 Shree Shyam Inorganics Pvt. Ltd. & Anr. Vs State of West Bengal & Ors. Mr. Rishi Raju, Mr. Suvranil Saha … For the Petitioners. Mr. A. Roy, Ld. GP Mr. T.M. Siddiqui, Mr. Debasish Ghosh … For the State. Heard learned Advocates appearing for the parties. In this writ petition, petitioners have challenged the impugned order under Section 129(3) of the State GST Act dated 16th February, 2022 by which petitioners were asked to make payment of the amount in question within 15 days from the date of issuance of the impugned notice and in compliance of the said notice, petitioners by way of furnishing a Bank guarantee and bond have already got release of the goods in question but it is the case of the petitioners that it got back the goods in question in damaged condition and the said goods could not be used for any commercial purpose, which Mr. Ghosh, learned Advocate appearing for the respondents denies. Whatever may be the factual and legal position, the impugned order dated 16th February, 2022 is an appealable order under the Statute and there is no bar by the Appellate Authority in adjudicating the nature
2 of dispute involved in this writ petition and in that view of the matter, I am not inclined to entertain this writ petition, being WPA 4703 of 2022 and the same is dismissed accordingly. However, it is clarified that this writ petition has been dismissed only on the ground of availability of alternative remedy and this Court has not gone into the merits of the case. ( Md. Nizamuddin, J. )
Reproduced from the public record of the Calcutta High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.