The division judge bench of Justice M.R. Shah and Justice Krishna Murari of the apex court in the case of The State of Madhya Pradesh and Another Vs M/s Commercial Engineers and Body Building Company Limited held that 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.
BRIEF FACTS
The factual matrix of the case is that the assessing officer denied the input rebate under Section 14 of the Madhya Pradesh Value Added Tax Act, 2002 to the respondent. Therefore, the respondent aggrieved by the decision of the assessing officer filed the writ petition before the high court rather than preferring an appeal under Section 46(1) of the MP VAT Act, 2002. However, the high court entertained the writ petition by observing that there are no disputed questions of facts involved in the matter 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 high court set aside the assessing officer order and consequently allowed the input rebate in the favour of the respondent.
COURT’S OBSERVATION
The hon’ble apex court held that 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. The court relied upon the judgment titled the State of Maharashtra and Others v. Greatship (India) Limited, United Bank of India v. Satyawati Tondon and others and held that in a tax matter when a statutory remedy of appeal is available, the High Court ought not to have entertained the writ petition under Article 226 of the Constitution of India against the Assessment Order by-passing the statutory remedy of appeal. The order passed by the high court was quashed and set aside.
CASE NAME- The State of Madhya Pradesh and Another Vs M/s Commercial Engineers and Body Building Company Limited
CITATION- CIVIL APPEAL NO. 7170 OF 2022
CORUM- Justice M.R. Shah and Justice Krishna Murari
DATE- 14.10.22
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