Delay in approaching Appellate Authority under section 107 of Bihar GST Act: Supreme Court Disallows SLP as assessee fails to Exercise Alternative Remedy [Read Judgement]

The Supreme Court while disallowing the Special Leave Petition (SLP), upheld the order of the Patna High Court wherein held that extraordinary jurisdiction under Article 226 of the Constitution of India cannot be invoked where the assessee has alternate remedies available and the assessee delayed in approaching the appellate authority under section 107 of the Bihar Goods and Service Tax (GST)Act, 2017.

M/s. Vishwanath Traders, the Petitioner aggrieved by the Assessment order dated March 12, 2022, passed by the Revenue Department, the Respondent filed an appeal before the Appellant Authority.

The Appellate Authority dismissed the appeal and stated that as per Section 107 of the Bihar Goods and Services Tax Act, 2017 (“the BGST Act”) an appeal can be filed within three months from the date of which the said decision or order is communicated to such person.

On appeal, the Patna High Court dismissed the writ by stating that they did not find any reason to invoke the extraordinary jurisdiction under Article 226 of the Constitution of India, especially when the Petitioner had alternate remedies available and the Petitioner was not diligent in availing such alternate remedies within the stipulated time. The Petitioner filed SLP before the Supreme Court.

A two-judge bench comprising Justice B V Nagarathna and Justice Ujjal Bhuyan dismissed the Special Leave Petition and held that extraordinary jurisdiction under Article 226 of the Constitution of India cannot be invoked where the assessee has alternate remedies available and he was not diligent in availing such alternate remedies within the stipulated time.

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