GST Rectification Orders Cannot Be Challenged in Writ When Alternate Remedy Available: Andhra Pradesh HC [Read Order]

The Andhra Pradesh High Court has struck down a writ petition filed against the Goods and Services Tax rectification and re-rectification orders holding that such orders cannot be challenged under Article 226 of the Indian Constitution as a valid statutory appeal is available under the GST Act.

The Division Bench of the Andhra Pradesh High Court comprising Justice Rao Raghunandan Rao and Justice T.C.D. Sekhar was dealing with a writ petition filed by Koperla Vijaya Bhaskar a registered GST dealer carrying on the business of manpower supply services. The petitioner challenged several rectification orders passed for the financial years 2019-20 to 2022-23.

The dispute arose after the inspection proceedings where there was a suppression of outward supplies and a failure to report the TDS amounts in the GSTR-3Breturns.

An assessment order was passed on April 17, 2023 for taxes, interest, and penalties. Rather than filing an appeal against the assessment order the petitioner chose to file an application under Section 161 of the APGST Act praying for rectification.

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Based on earlier directions from the High Court, orders were passed on the applications filed which are now challenged in the writ petition.

The petitioner alleged that the rectification orders were arbitrary and passed without proper inquiry of the evidence. The State claimed that the orders were passed after following due procedure and personal hearing was also provided as well as that the petitioner had an alternative remedy of appeal under the Act.

The High Court noted that the original assessment order was never challenged through the statutory appellate process. The Court further held that the applications for rectification were considered after issuing notice and providing an opportunity for hearing.

Hence, the Bench indicated that the disputed questions of fact cannot be adjudicated in writ jurisdiction. The Court held that the petitioner must seek relief through the appellate remedy available under the GST Act and dismissed the writ petition, however, with liberty to act in accordance with the law.

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