Shambhu Poddar vs. South Eastern Railway Through Its General Manager

Held

The Court held that it was not inclined to entertain the writ petition directly due to the disputed nature of the GST liability and the availability of an alternative remedy. The Court noted that the petitioner contended he was not liable to pay the GST, while the respondents disputed this. Consequently, the Court did not decide on the merits of the GST liability. Instead, liberty was granted to the petitioner to approach the alternative forum, specifically the Arbitral Tribunal, as stipulated in the terms and conditions of the agreement. This would allow the dispute regarding the GST payment to be resolved through arbitration. The Court disposed of the writ petition with this liberty.

Facts

The petitioner, Shambhu Poddar, filed a writ petition seeking the release of Rs. 2,10,714/- charged as Goods and Services Tax (GST) on bills for work completed. The petitioner contended that, as per the contract, he was not liable to pay this GST amount. The respondents, South Eastern Railway and its officials, argued that the petitioner was indeed liable for the GST and that the demand was therefore justified. They also raised the preliminary objection that the writ petition was not maintainable due to the availability of an alternative remedy.

Key Issues

1. Whether the writ petition is maintainable in light of the availability of an alternative remedy, specifically arbitration as per the contract terms. 2. Whether the petitioner is liable to pay the GST amount of Rs. 2,10,714/- as demanded by the respondents. Petitioner's Contention: The petitioner argued that he is not liable to pay the GST as per the contract and sought the release of the disputed amount. The petitioner approached the High Court under its writ jurisdiction. Respondents' Contention: The respondents contended that the petitioner is liable to pay the GST amount, and therefore, the demand raised is not illegal. They further argued that due to the existence of an alternative remedy, the writ petition is not maintainable. If the petitioner has any grievance, he should approach the appropriate forum, which is the arbitrator, in terms of the agreement.