M/S Bharat Petroleum Corp.Ltd vs State Of Punjab & Ors
- SCC(2009) 17 SCC 23
Ratio decidendi
The rule this decision rests on
When a statutory remedy of appeal exists under a taxing statute, an assessee is required to exhaust that remedy before filing a writ petition in the High Court, and the High Court should direct the assessee to do so; however, observations made by the High Court on the merits while dismissing a writ petition for non-exhaustion of remedy do not bind the Appellate Authority, which must decide the matter afresh on merits uninfluenced by those observations.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Bharat Petroleum Corporation Limited ...Appellant(s)
Versus
State of Punjab & Ors. ...Respondent(s)
O R D E R
Heard learned counsel on both sides. Leave granted.
Writ Petition was filed by the appellant-assessee [Bharat Petroleum Corporation Limited] under Rule 21(1) and Rule 21(2) of the Punjab Value Added Tax Rules, 2005. The case of the appellant was that the Order of Assessment disallowing input tax credit on the purchase value of the product was illegal. This Assessment Order was challenged by the appellant before the High Court by way of writ petition without exhausting statutory remedy of appeal under the Punjab Value Added Tax Act, 2005. In the circumstances, vide impugned judgment, the High Court has dismissed the writ petitions directing the appellant herein to exhaust the statutory remedy. However, after directing the assessee to exhaust the statutory remedy, ...2/-
- 2 -
the High Court has made observations on the merits of the case. Hence, this civil appeal.
We are of the view that it would be open to the assessee to challenge the Order of Assessment by filing appeal before the First Appellate Authority which will decide the matter on merits, uninfluenced by the observations made in the impugned judgment of the High Court. The appeal, if any, to be filed by the assessee within a period of four weeks. If appeal is so filed, then, the Appellate Authority will decide the matter in accordance with law.
The civil appeal is allowed accordingly.
......................J. [S.H. KAPADIA]
......................J. [AFTAB ALAM] New Delhi, December 04, 2009.
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