Sarathy Cars Private Ltd. Vs State Tax Officer (Kerala High Court)
Introduction: In a recent case between Sarathy Cars Private Ltd. and the State Tax Officer, the Kerala High Court ruled on the availability of the statutory appeal remedy against assessment orders under the CGST Act, 2017.
Detailed Analysis: Sarathy Cars Pvt Ltd. challenged the assessment order (Exhibit P-9) and rectification order (Exhibit P-13) issued under the CGST/SGST Act, 2017 and its rules. The company approached the court under Article 227 of the Constitution of India instead of utilizing the statutory remedy of appeal under Section 107 of the CGST/SGST Act, 2017.
The Kerala High Court emphasized that Article 227 jurisdiction is limited and primarily focused on identifying jurisdictional errors or errors apparent on the face of the record. The court clarified that it does not delve into the merits of the orders passed by lower courts or statutory authorities exercising quasi-judicial powers.
Upon reviewing the impugned orders, the court found no error or lack of jurisdiction by the assessing authority. There was no apparent error on the face of the record that warranted intervention under Article 227. The court reiterated that Article 227 is not the appropriate remedy for factual errors or evidence-related issues.
As a result, the writ petition was dismissed, with the court advising the petitioner to pursue the statutory appeal remedy available under Section 107 of the CGST/SGST Act, 2017.
Conclusion: The Kerala High Court’s decision underscores the importance of adhering to statutory remedies provided under tax laws. By dismissing the writ petition and directing the petitioner to utilize the statutory appeal mechanism, the court reaffirmed the significance of the appellate process in resolving disputes related to tax assessments under the CGST Act. This decision serves as a reminder for taxpayers to follow the prescribed legal procedures for challenging tax assessments, ensuring procedural compliance and legal recourse in tax matters.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
1. The present writ petition has been filed impugning the assessment order in Exhibit P-9 and rectification order in Exhibit P-13 passed under the provisions of CGST/SGST Act, 2017 and Rules made therein.
2. There is remedy of statutory appeal against the orders impugned in this writ petition under Section 107 of the CGST/SGST Act, 2017. Petitioner, instead of resorting to the statutory remedy of appeal has approached this Court under Article 227 of the Constitution of India. The power under Article 227 of the Constitution of India is limited jurisdiction which exercise rights to see that there is any jurisdictional error committed by any statutory authority or there is error apparent on the face of the records. This Court is not required to go into the merit of the orders passed by the Court below or any statutory authority in exercise of its quasi judicial power.
3. From perusal of Exhibits P-9 and P-13 orders impugned in this writ petition, I do not find that the assessing authority has committed any error or that the orders are without jurisdiction. There is no error apparent on the face of the record. For factual error or evidence, Article 227 is not the remedy available to the petitioner. In view thereof, the writ petition is without merit and substance which is hereby dismissed. However, the petitioner may avail remedy of statutory appeal, if he so advised.