M/S. Aaa Enterprises Through Proprietor Vijay Kumar Nair HUF vs. Union Of INDIA

Held

The Court held that the writ petition had become infructuous. The reasoning was based on the fact that an order-in-original had been passed after the petitioner participated in the adjudication proceedings. The Court noted that the petitioner had an alternative and efficacious remedy of appeal under the CGST Act, 2017, against the order-in-original. Therefore, the writ petition, which challenged the pre-adjudication steps of search and seizure, was no longer the appropriate forum for redressal. The ratio decidendi is that when an alternative statutory remedy is available and has become accessible due to subsequent developments (like the passing of an order-in-original), a writ petition challenging earlier stages of the process becomes infructuous. The operative direction was to dismiss the petition.

Facts

The petitioner, M/s. AAA Enterprises, through its proprietor Vijay Kumar Nair HUF, filed a writ petition in 2021 challenging the search, seizure, and panchnama conducted by the respondents. The respondents filed a reply. During the proceedings, the respondents' counsel informed the Court that a show-cause notice was issued to the petitioner, and the petitioner participated in the adjudication proceedings. An order-in-original has now been passed, which is appealable under the CGST Act, 2017. The respondents argued that due to the passage of time and the availability of an alternative remedy, the writ petition had become infructuous.

Key Issues

1. Whether the writ petition is maintainable in light of the availability of an alternative remedy of appeal under the CGST Act, 2017, after an order-in-original has been passed? Petitioner's Argument: The judgment does not record any specific arguments made by the petitioner. Revenue/State's Argument: The respondents contended that an order-in-original has been passed, and the petitioner has participated in the adjudication proceedings. Therefore, the petitioner has an alternative remedy of appeal under Section 107 of the CGST Act, 2017. The writ petition has become infructuous due to the efflux of time and the availability of this statutory remedy.