GST Update Desk of CA. Praveen Sharma GST

 Desk of CA. Praveen Sharma – 957 Series (CAPS) 

In the case of Nipso Polyfabriks Ltd., the Himachal Pradesh High Court dealt with a challenge to an appellate order passed under Section 107 of the CGST/HPGST Act, which had upheld a demand raised under Section 73. The taxpayer had earlier filed an appeal before the First Appellate Authority, but the same was dismissed.

The petitioner approached the High Court through a writ petition, mainly on the ground that the GST Appellate Tribunal was not constituted, and therefore no effective alternative remedy was available.

However, the State submitted that the GST Appellate Tribunal has now been constituted and is functional, providing a proper statutory remedy to the taxpayer.

The High Court agreed with the department and observed that when an effective alternative remedy is available under the GST law, the writ jurisdiction should not be invoked. The Court emphasized that the petitioner should follow the appellate mechanism prescribed under the Act.

Accordingly, the writ petition was disposed of with liberty to the petitioner to approach the GST Appellate Tribunal for further relief.

This judgment reinforces the principle that writ petitions are not maintainable when a proper statutory remedy exists.

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CAPS