M/s Total Oil Indian Pvt Ltd (now known as Total Energies Marketing India Pvt Ltd), Vannamada, Palakkad, represented by its Manager (Taxation) Arun K Vishwakarma, had filed W.P.(C).No.26443 of 2021 before the High Court of Kerala challenging Ext.P2 series of orders dated 18.02.2021 passed by the State GST authorities, on the ground that the orders violated principles of natural justice. The learned Single Judge examined this ground in detail and declined to entertain the writ petition, while granting the petitioner leave to move the competent authority for appropriate reliefs. Aggrieved, the company filed WA No. 79 of 2022 before a Division Bench comprising Justice S.V. Bhatti and Justice Basant Balaji, which came up for admission on 25.02.2022.

Issues Involved

  1. Whether the Single Judge was justified in declining to entertain the writ petition challenging the Ext.P2 series of orders on the ground of violation of natural justice.
  2. Whether the Division Bench should reappraise the natural justice plea already considered in detail by the Single Judge.
  3. Whether the appellant's liberty to move the competent authority for relief survived dismissal of the writ appeal.

Petitioner's Arguments

  • The appellant contended that Ext.P2 series of orders dated 18.02.2021 were passed in violation of principles of natural justice, warranting interference by the writ court.
  • Challenged the Single Judge's refusal to entertain the writ petition on this ground and sought reversal by the Division Bench.

Respondent's Arguments

  • The State GST authorities, represented by the Senior Government Pleader, supported the Single Judge's judgment declining to entertain the writ petition.
  • No additional grounds beyond supporting the judgment under appeal are recorded in the brief appellate order.

Court Order / Findings

  • The Division Bench held that the natural justice ground raised by the appellant had already been considered in detail by the Single Judge in the judgment under appeal.
  • Finding no reason to take a different view on the same facts and circumstances, the Bench confirmed the judgment and dismissed the writ appeal.
  • The Bench clarified that the leave already granted by the Single Judge — permitting the appellant to move the competent authority for appropriate reliefs — remained unaffected by the dismissal.

Important Clarification

  • A Division Bench will ordinarily not re-open a natural-justice challenge to a GST order that the Single Judge has already examined in detail and rejected, absent any distinguishing circumstance shown in appeal.
  • Dismissal of a writ appeal on this basis does not foreclose the assessee's right to pursue remedies before the competent/appellate authority, where such liberty has been expressly preserved.
  • Assessees alleging breach of natural justice in GST proceedings should be prepared to demonstrate a concrete procedural deficiency, since writ courts scrutinise such pleas closely before granting relief.

Sections Involved

  • Article 226, Constitution of India — Writ jurisdiction of the High Court, invoked in the original petition challenging the Ext.P2 orders on natural justice grounds.
  • The order does not specify the substantive CGST/SGST provision under which the Ext.P2 series of orders were passed; the challenge was confined to the natural justice ground.

Decision – In Favour of

Department, on the natural justice challenge — the writ appeal was dismissed and the Single Judge's judgment confirmed. However, the disposal is not a clean win for either side on the underlying tax dispute: liberty was expressly preserved for the appellant to pursue its remedy before the competent authority.

Related Case Laws

  • W.P.(C) No. 26443 of 2021, Kerala High Court — the Single Judge's judgment declining to entertain the natural-justice challenge to the Ext.P2 orders, confirmed in this appeal.
  • Other Kerala High Court rulings on the scope of writ interference in GST assessment/demand orders alleging breach of natural justice, and on the availability of statutory appellate remedies under the CGST/SGST Act, are relevant reading alongside this decision.

Case Details

  • Court: High Court of Kerala at Ernakulam (Division Bench)
  • Case No.: WA No. 79 of 2022 (arising from WP(C) No. 26443 of 2021)
  • CNR: Not stated in the order
  • Coram: Hon'ble Mr. Justice S.V. Bhatti and Hon'ble Mr. Justice Basant Balaji
  • Date of Impugned Orders (Ext.P2): 18.02.2021
  • Date of Judgment: 25.02.2022

Link to Download the Order

Download the order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.