Simplified Explanation of the Judgment
This judgment delivered by the Patna High Court in 2023 deals with an important issue frequently faced by taxpayers—whether a person can directly approach the High Court under Article 226 of the Constitution without first exhausting the statutory appeal remedy available under the tax law.
In the present case, the petitioner was aggrieved by an assessment order passed under the Bihar Goods and Services Tax (BGST) Act. The assessment order was dated 09 October 2021. Instead of filing an appeal before the designated appellate authority under Section 107 of the BGST Act, the petitioner directly approached the High Court by filing a writ petition in the year 2023.
The core grievance of the petitioner related to the computation of turnover, determination of taxable turnover, and the amount of tax payable as assessed by the tax authorities. These issues, as noted by the Court, fall squarely within the domain of the statutory appellate authority constituted under the BGST Act.
The Court first examined whether the petitioner still had an opportunity to file an appeal within the limitation period. In this context, the Bench referred to the directions issued by the Hon’ble Supreme Court during the COVID-19 pandemic, wherein limitation periods were extended nationwide. As per those directions, the period from 15 March 2020 to 28 February 2022 was excluded while computing limitation. Further, it was clarified that litigants had 90 days from 01 March 2022 to file appeals.
Applying this principle, the High Court observed that the petitioner could have filed an appeal on or before 29 May 2022. Even if the benefit of condonation of delay under Section 107(4) of the BGST Act was considered, the maximum permissible time to file an appeal would have expired by 28 June 2022. However, the petitioner failed to file any appeal even within this extended window.
The Court then turned to the scope of its jurisdiction under Article 226 of the Constitution. Relying on settled principles laid down by the Supreme Court, the High Court reiterated that although writ jurisdiction is wide, it is discretionary in nature. When an effective and adequate alternate remedy is available under a statute, the High Court ordinarily refrains from exercising its writ jurisdiction.
The Court emphasised that interference under Article 226 is justified only in exceptional circumstances, such as violation of principles of natural justice, lack of jurisdiction, infringement of fundamental rights, or when the validity of a statute is challenged. In the present case, no such exceptional ground was pleaded or established by the petitioner.
It was further observed that issues relating to assessment, calculation of turnover, and tax liability are factual and technical in nature and are best adjudicated by the appellate authority under the tax statute. Permitting a writ petition in such circumstances would defeat the statutory scheme and encourage bypassing of remedies specifically created by law.
The High Court also made it clear that when a statute provides a specific time limit for filing an appeal and for condonation of delay, neither the appellate authority nor the High Court can extend that period beyond what the law permits. Courts cannot rewrite statutory limitation provisions on equitable considerations.
In conclusion, the Court held that the petitioner, having failed to avail the statutory appellate remedy within the prescribed time, could not invoke the extraordinary jurisdiction of the High Court. The writ petition was therefore dismissed.
Significance or Implication of the Judgment
This judgment serves as a strong reminder to taxpayers and litigants that statutory remedies must be exhausted before approaching constitutional courts. For the general public, it highlights the importance of adhering to limitation periods under tax laws. For the government and tax administration, the ruling reinforces the authority of statutory appellate mechanisms and discourages premature or avoidable writ litigation.
The decision promotes judicial discipline and ensures that High Courts are not burdened with disputes that can be effectively resolved by specialised appellate forums.
Legal Issue(s) Decided and the Court’s Decision with Reasoning
- Whether a writ petition is maintainable without exhausting statutory appeal remedies
- The Court held that it is not maintainable when an effective alternate remedy exists.
- Effect of COVID-19 limitation extension on filing GST appeals
- The Court held that even after giving full benefit of Supreme Court directions, the petitioner failed to act within time.
- Scope of High Court’s jurisdiction under Article 226
- The Court reiterated that writ jurisdiction is discretionary and not meant to bypass statutory forums.
- Whether delay beyond statutory condonation period can be ignored
- The Court held that statutory time limits cannot be extended by courts.
Judgments Relied Upon or Cited by Court
- State of H.P. & Ors. v. Gujarat Ambuja Cement Ltd. & Anr., (2005) 6 SCC 499
- In Re: Cognizance for Extension of Limitation, Suo Motu Writ Petition (C) No. 3 of 2020
Case Title
Pankaj Kumar Vs. State Goods And Services Tax
Case Number
Civil Writ Jurisdiction Case No. 2751 of 2023
Coram and Names of Judges
- Hon’ble the Chief Justice
- Hon’ble Mr. Justice Partha Sarthy
Names of Advocates and who they appeared for
- Advocate for the petitioner
- Government Pleader for the respondents
Link to Judgment
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