GST | No Inherent Lack Of Jurisdiction, Adjudication Proceedings May Not Be Interjected In Extraordinary Writ Jurisdiction: Allahabad High Court

The Allahabad High Court has held the allegations of violations of law cannot be dealt with in extraordinary jurisdiction of the Court under Article 226 of the Constitution of India unless inherent lack of jurisdiction is claimed.

The bench comprising of Justices Saumitra Dayal Singh and Surendra Singh-I held

“Once allegations of infraction of law arise, adjudication proceedings may not be interjected in exercise of extra ordinary jurisdiction of the writ court. Limited scope of challenge may be preserved for cases involving inherent lack of jurisdiction or grounds of like nature.”

Adjudication notice was issued to the petitioner for tax period August, 2018 to March, 2019 alleging petitioner's involvement in misuse of E-way Bills by the consignor i.e. M/s. Kay Pan Fragrances Pvt. Ltd. and M/s. Mahaveer Trading Co.

Counsel for petitioner contended that the entire proceedings have originated from survey conducted at the premises of M/s. Kay Pan Fragrances Pvt. Ltd. and M/s. Mahaveer Trading Co. in the month of July, 2019 whereas, the petitioner had already surrendered its business registration in May, 2019, prior to the survey. However, the Court rejected this submission as the proceedings initiated were for tax period August, 2018 to March, 2019 when the registration was admitted subsisting.

The Court observed that for deciding the correctness or otherwise of the allegation or involvement of the petitioner in alleged misuse of E-way Bills would involve fact appreciation. Since the petitioner has efficacious alternate remedy available and there is no inherent lack of jurisdiction, the Court refused to entertain the writ petition.

Accordingly, the writ petition was dismissed.

Case Title:- M/S Bajrang Trading Company vs. Commissioner Commercial Tax And Another 2023 LiveLaw (AB) 414 [WRIT TAX No. - 1123 of 2023]

Citation: 2023 LiveLaw (AB) 414

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