M/S Acme Ferro Alloys Private Limited Through Director Omprakash Agarwal vs. Union Of INDIA

Held

The Court held that the writ petition is not maintainable due to the availability of an efficacious alternative statutory remedy under Section 107 of the CGST Act, 2017. The Court found force in the submissions of the learned counsel for the revenue, citing multiple Supreme Court judgments that mandate availing statutory appeals when provided by law. The Court reasoned that it is not proper to entertain the writ petition when a clear statutory path for redressal exists. The petitioner was granted liberty to avail the alternative remedy by filing an appeal within twenty days from the date of the order, and the issue of limitation was directed not to come in the way of filing the appeal within this period. The petitioner was also permitted to raise all grounds raised in the writ petition before the appellate authority. The appellate authority was directed to decide the appeal on merits expeditiously.

Facts

The petitioner, M/s Acme Ferro Alloys Private Limited, filed a writ petition challenging an order dated 31.08.2023 passed by the Deputy/Assistant Commissioner, CGST, Ratlam. The impugned order held that the petitioner had wrongly availed input tax credit (ITC) amounting to Rs. 22,14,230/- for the period 2018-2019, citing contravention of Section 16 of the CGST Act, 2017. The order also included consequential directions. The revenue raised a preliminary objection regarding the availability of an alternative statutory remedy under Section 107 of the CGST Act, 2017.

Key Issues

1. Whether the writ petition is maintainable when an efficacious alternative statutory remedy of appeal under Section 107 of the CGST Act, 2017 is available to the petitioner? The petitioner's side: The judgment does not record any specific arguments made by the petitioner's counsel on the maintainability of the writ petition. The petitioner's primary action was filing the writ petition challenging the order. The revenue's side: The revenue contended that a statutory alternative remedy under Section 107 of the CGST Act, 2017 is available and that the High Court should not entertain the writ petition, relying on Apex Court judgments in Hindustan Coca Cola Beverage Private Limited vs. Union of India and others, Hameed Kunju Vs. Nazim, and Ansal Housing and Construction Ltd. vs. State of Uttar Pradesh and others, which emphasize availing statutory appeals.