Denial of Input Rebate under MP VAT Act: HC cannot Entertain Writ Petition Challenging Assessment on Merits, rules Supreme Court [Read Judgment]

In a recent ruling, a two-judge bench of the Supreme Court has quashed an order of the Madhya Pradesh High Court wherein the High Court set aside an assessment order passed by the department denying input rebate to the assessee under the VAT Act.

The bench comprising Justice Krishna Murari and Justice M R Shah has held that the High Court cannot entertain its writ jurisdiction to quash an assessment order on merits as the assessee has an alternative statutory remedy available under the Madhya Pradesh Value Added Tax Act, 2002.

Earlier, the assessee, M/s Commercial Engineers, and Body Building Company Limited was aggrieved by an Assessment Order wherein the Assessing Officer denied the Input rebate under Section 14 of the Act.

Quashing the HC order on the ground of maintainability, the Apex Court has held the High Court ought not to have entertained the writ petition under Article 226 of the Constitution of India challenging the Assessment Order denying the Input rebate against which a statutory appeal would be available under Section 46(1) of the MP VAT Act, 2002.

“While entertaining the writ petition under Article 226 of the Constitution of India challenging the Assessment Order denying the Input rebate, the High Court has observed that there are no disputed questions of facts arise and it is a question to be decided on admitted facts for which no dispute or inquiry into factual aspects of the matter is called for. The aforesaid can hardly be a good/valid ground to entertain the writ petition under Article 226 of the Constitution of India challenging the Assessment Order denying the Input rebate against which a statutory remedy of appeal was available,” the Court said.

To Read the full text of the Judgment CLICK HERE

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