Writ jurisdiction cannot be invoked to bypass alternative statutory remedies when a valid show cause notice exists.
Issue
Whether a writ petition under Article 226 of the Constitution is maintainable to challenge an assessment order on the grounds of improper notice, when the record shows the taxpayer treated the summary of notice as a valid show cause notice, participated in the proceedings, and filed a detailed reply.
Facts
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The appellant challenged an assessment order (Ext.P9) via a writ petition, contending that the department failed to issue a proper statutory notice under Section 74 of the Act.
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The appellant argued that an initial communication (Ext.P2) was not a legal notice and that a subsequent document (Ext.P3) was merely a summary of a show cause notice rather than a complete statutory notice.
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However, during the initial assessment stage, the appellant had submitted a reply (Ext.P5) where they explicitly referred to Ext.P3 as the official show cause notice.
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A Learned Single Judge dismissed the writ petition. On appeal, the Division Bench of the High Court observed that while Ext.P2 was a mere intimation, Ext.P3 prima facie satisfied the requirements of a Section 74 notice as it was issued in Form GST DRC-01 under Rule 142(1)(a).
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The High Court held that since the appellant actively participated in the proceedings and filed a reply, any residual dispute regarding the format of the notice should be raised before the statutory appellate authority, making a writ petition under Article 226 non-maintainable.
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The appellant filed a Special Leave Petition (SLP) before the Supreme Court challenging the High Court’s ruling.
Decision
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Held, in favour of the Revenue: The Supreme Court found no valid grounds to interfere with the judgment passed by the High Court, and the SLP is dismissed.
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Writ Jurisdiction Barred: In the absence of exceptional circumstances showing that the final assessment order (Ext.P9) was completely void or passed entirely without jurisdiction, a challenge under Article 226 cannot be entertained.
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Relegation to Alternate Remedy: Since the appellant participated in the proceedings and filed a reply, they must resolve any factual disputes regarding the nature of the notice by filing a standard statutory appeal under Section 107.
Key Takeaways
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Form GST DRC-01 Suffices as Notice: A summary of a show cause notice issued electronically in Form GST DRC-01 under Rule 142 can prima facie be treated as a valid framework for a notice, especially if the taxpayer understands its contents and responds to it.
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Estoppel by Conduct: A taxpayer cannot explicitly treat a departmental communication as a “show cause notice” in their written replies and later turn around in writ proceedings to claim that no valid notice was ever served.
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Strict Adherence to Statutory Channels: High Courts and the Supreme Court will firmly relegate taxpayers to the statutory appellate route (Section 107) for procedural or factual disputes, reserving extraordinary writ jurisdiction solely for absolute jurisdictional failures or blatant violations of natural justice.