SC dismissed SLP citing an alternative remedy of Appeal against Assessment Order

Last updated: 02 September 2021

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Quick Summary

The Supreme Court has dismissed a Special Leave Petition (SLP) filed by M/s Siddhi Vinayak Trading Company. The court cited the availability of an alternative remedy, specifically an appeal under Section 107 of the UPGST Act against the assessment order, as the reason for not entertaining the SLP. The petitioner had initially approached the Allahabad High Court with a writ petition challenging proceedings initiated by different tax authorities, but their petition was dismissed, leading to the appeal to the Supreme Court.

Court :
Supreme Court of India

Brief :
In M/s Siddhi Vinayak Trading Company V. Union of India & Ors. [Special Leave to Appeal (C) No.11071/2021] dated July 26, 2021 the Hon'ble Supreme Court dismissed the Special Leave Petition ('the SLP') as alternative remedy of appeal against the Assessment order is available with the Petitioner.

Citation :
Special Leave to Appeal (C) No.11071/2021

In M/s Siddhi Vinayak Trading Company V. Union of India & Ors. [Special Leave to Appeal (C) No.11071/2021] dated July 26, 2021 the Hon'ble Supreme Court dismissed the Special Leave Petition ('the SLP') as alternative remedy of appeal against the Assessment order is available with the Petitioner.

Facts

Earlier, M/s Siddhi Vinayak Trading Company ('the Petitioner') filed writ petition before the Hon'ble Allahabad High Court seeking to quash of Revenue's order, as the initiation of the proceeding and summon were issued under Section 70 of the Central Goods and Services Tax Act, 2017 ('the CGST Act') was made by Central Tax Authority and adjudication is made by State Tax Authority.

The High Court observed that the initiation of the proceeding for imposition of tax and penalty was with the issuance of the notice under Section 74 of the Uttar Pradesh Goods and Services Tax Act, 2017 ('the UPGST Act') and the inquiry under Section 70 of the CGST Act was independent. Subsequently, the High Court dismissed the petition.

Aggrieved with the decision of Allahabad High Court, the petitioner is before the Hon'ble Supreme Court against the High Court decision.

Held

The Hon'ble Supreme Court in Special Leave to Appeal (C) No.11071/2021] dated July 26, 2021 held as under:

Since an appeal lies under Section 107 of the UPGST Act against the order of assessment, we are not entertaining the SLP.
It is open to the Petitioners to pursue the alternative remedy keeping all the rights and contentions of the parties open.
Supreme Court dismissed the Appeal

FAQ :

The Supreme Court dismissed the SLP because an alternative remedy of appeal against the assessment order was available to the petitioner under Section 107 of the UPGST Act.

The petitioner was challenging the initiation of proceedings and summons issued under Section 70 of the CGST Act by a Central Tax Authority, with adjudication made by a State Tax Authority.

The petitioner first filed a writ petition before the Allahabad High Court seeking to quash the Revenue's order.

The Allahabad High Court dismissed the petitioner's writ petition.

The Supreme Court stated it was open for the petitioner to pursue the alternative remedy of appeal, keeping all rights and contentions of the parties open.

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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