Writ Petition against Assessment Order not maintainable when remedy of appeal not availed during the period of limitation

The Rajasthan High Court has dismissed a writ petition filed by M/s. Thekedar Nand Lal Sharma against an assessment order. The court ruled that a writ petition cannot be used to challenge an assessment order if the statutory appeal remedy under the CGST Act was not pursued within the given time limit. The petitioner failed to file an appeal and allowed the order to become final before approaching the High Court.

The Hon'ble Rajasthan High Court in the case of M/s. Thekedar Nand Lal Sharma v. State of Rajasthan and Ors.[D.B. Civil Writ Petition No. 1437/2024 dated April 30, 2024] dismissed the writ petition and held that, the writ petition against Assessment Order is not maintainable when remedy of appeal is not availed during the period of limitation.

Facts

M/s. Thekedar Nand Lal Sharma ("the Petitioner") filed a writ petition challenging the Show Cause Notice dated October 28, 2022 ("the Impugned SCN") issued by the Revenue Department ("the Respondent") and order dated March 2, 2023 ("the Impugned Order") under Section 74 of the Central Goods and Services Tax Act, 2017 ("the CGST Act").

Aggrieved by the Impugned Order and SCN issued, the Petitioner filed a writ petition before the Hon'ble High Court.

Issue

Whether Writ Petition against Assessment Order not maintainable when remedy of appeal not availed during the period of limitation?

Held

The Hon'ble Rajasthan High Court in D.B. Civil Writ Petition No. 1437/2024 held as under:

• Noted that, the Petitioner did not file the appeal and allowed the Impugned Order passed during the proceeding to become final and thereafter approached the Hon'ble High Court by way of filing writ petition against the imposition of tax, interest and penalty.
• Further Noted that, The Petitioner deliberately chose not to file the appeal and avail the remedy of appeal prescribed under Section 107 of the CGST Act but waited for the prescribed period of limitation for filing of appeal to expire.
• Relying upon the judgment of the Hon'ble Supreme Court in the case of Assistant Commissioner (CT) LTU, Kakinada & Ors. vs. Glaxo Smith Kline Consumer Health Care Limited [Civil Appeal No. 2413 of 2020 dated May 6, 2020] wherein it was held that, writ petition cannot be filed for granting of relief against the assessment order passed when the appeal could not be filed within the prescribed period, therefore, being barred by limitation., the Hon'ble High Court opined that the writ petition is not maintainable.
• Held that, the writ petition is dismissed.

OFFICIAL JUDGMENT COPY HAS BEEN ATTACHED BELOW