The Kerala High Court has held that the Taxpayer cannot invoke writ jurisdiction and approach the High Court to avoid the mandatory pre-deposit since the matter is already pending before the Statutory appellate authority under the Central Goods and Services Tax Act, 2017.
The petitioner, M/s Nico Tiles, challenged a series of monthly assessment orders issued under section 62 of the Central Goods and Services Tax Act, 2017 before the High Court contending that the cancellation of GST registrations were without jurisdiction.
Justice Bechu Kurian Thomas observed that already an appeal was preferred by the petitioner before the appellate authority.
“ Once the petitioner undertakes the remedy of a statutory appeal under section 107 of the Act, petitioner cannot thereafter turn around and approach this Court seeking reliance upon subsequent events, to avoid the mandatory pre-deposits. Such a practice, if permitted, would render the provisions of the statute redundant. The liability to make the pre-deposit befalls on the date of filing of the appeal, i.e., 11.03.2020 in the instant case. The said liability cannot be eschewed from reckoning on the basis of subsequent events, which as claimed by the petitioner to be beneficial to it. The subsequent events can, at the most, be utilised for availing the appropriate benefits while the appeal is considered on merits but not to overcome the mandate of pre-deposit under section 107 of the Act,” the Court said.
Dismissing the petition, the High Court held that “In view of the above consideration, this Court is of the view that since the petitioner had already invoked the appellate remedy, the said appeal ought to be pursued as contemplated by law. The remedy of Article 226 of the Constitution of India being extra ordinary, I do not find the existence of any circumstances warranting the invocation of the extra ordinary jurisdiction, after invoking such an appellate remedy.”
NICO TILES MADHAVAM vs THE STATE TAX OFFICER, STATE GOODS AND SERVICE TAX DEPARTMENT
CITATION: 2022 TAXSCAN (HC) 130
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