Order Date – 10 February 2025

Parties: LGW Industries Limited Vs. Assistant Commissioner of Revenue, State Tax & Ors.

Facts –

• The Petitioner,  LGW Industries Limited, was served with a show cause notice under Section 74(1)  for the period July, 2017 to March, 2018 allowing the chance to show cause why the RTP should not pay tax as ascertained after deducting the amount already paid voluntarily for the said period by 29.04.2024.
• It was submitted that the adjudication order was passed without giving an opportunity of hearing and without granting opportunity to file written notes of reply by the petitioner.

Issue –

• Whether the order issued under section 74 is appealable in the High Court when there is a clear and adequate remedy available for grievance?

Order –

• The Single Bench of Hon’ble High Court observed that an order passed under Section 74 of the GST Act is appealable under Section 107A of the said Act. The above Section categorically states that there is a statutory mechanism for redressal enabling the aggrieved party to challenge the reassessment order before an appropriate appellate authority. This Court underlines that this statutory provision ensures that the petitioner has a clear and adequate remedy available for his grievance.
• Further it was held that when a specific remedy is available, a well settled principle of law that the High Court’s writ jurisdiction cannot be ordinarily invoked unless under exceptional circumstances. In the present case, as the petitioner could not demonstrate any exceptional circumstances and has adequate relief by way of preferring an appeal under Section 107 of the GST Act and there arises no need for judicial intervention through a writ petition at this stage.
• The writ petition disposed of.