In WPA 12132 of 2023 -CAL HC- J.L. Enterprises should pursue relief under GST statute rather than seeking recourse under Article 226, rules Calcutta High Court
Justice Bibek Chaudhuri [25-05-2023]

Read Order: J. L. Enterprises v. Assistant Commissioner, State Tax, Ballygunge Charge

Chahat Varma

New Delhi, June 8, 2023: The Calcutta High Court, in the case of recovery of GST, has held that sub-section 5 of Rule 159 of the Central Goods and Services Tax Rules, 2017 grants sufficient power to the petitioner to file objections for the release of the bank account or in the instant case, cash-credit facility. The court noted that when there was a provision for efficacious relief within the statute itself, the petitioner should pursue such relief rather than seeking recourse under Article 226 of the Constitution.

J.L. Enterprises (petitioner) was a partnership firm. On 4th March, 2023, State Tax Department Officers visited the registered office of the said firm and inspected the books on accounts and verified records under Section 67 of West Bengal Goods and Services Tax Act and found some anomalies. The Assistant Commissioner, State Tax, issued a notice to the petitioner's banker to provisionally attach the cash-credit facility of the firm. In response, the petitioner filed a petition under Article 226 of the Constitution of India challenging the order of provisional attachment.

The court noted that the Supreme Court in various rulings has held that the High Court will not ordinarily entertain a petition under Article 226 of the Constitution of India, if an effective remedy is available to the aggrieved person and that this Rule applies with greater rigour in matters involving recovery of public money and the dues of the bank and other financial institutions.

In light of the above observation, the court declined to provide relief under Article 226 in this case.