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Sales Tax Review |
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February 2007 |
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Service Tax Corner |
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Writ Petition
It has been observed by the author that there lies some
confusion in the mind of the assessee as to whether to seek remedy by filing an
appeal or by making a writ petition in the High Court. The circumstances, under
which Article 226 of the Constitution of India can be invoked, are summarized
herein. Further, the Article provides synopsis of some relevant judgments under
the subject matter.
Writ is the extraordinary power of the Courts called in to
the party’s assistance. Writ is a watchdog to stop perversity and to redress
manifest injustice whenever it is found. The writ power is exercised sparingly
and only in appropriate cases where judicial conscience of the High Court
dictates it to act, otherwise, a gross failure of justice or grave injustice
shall occasion. The writ petition does not confer any inherent right to the
petitioner. It is only a power vested with the Court without any corresponding
right to the party
The Constitution under Article 32 empowers the Supreme Court
and similarly under Article 226 the High Court to enforce fundamental rights by
passing appropriate writs as per the provision. Only the Supreme Court or High
Court can pass a writ. Their writ jurisdiction is concurrent. The Article 226 is
reproduced hereunder for the benefit of the readers.
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Notwithstanding
anything in Article 32 every High Court shall have power, throughout the
territories in relation to which it exercises jurisdiction, to issue to any
person or authority, including in appropriate cases, any Government, within
those territories directions, orders or writs, including writs in the nature
of habeas corpus, mandamus, prohibition, quo warranto and
certiorari, or any of them, for the enforcement of any of the rights
conferred by Part III and for any other purpose.
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The power
conferred by clause (1) to issue directions, orders or writs to any
Government, authority or person may also be exercised by any High Court
exercising jurisdiction in relation to the territories within which the
cause of action, wholly or in part, arises for the exercise of such power,
notwithstanding that the seat of such Government or authority or the
residence of such person is not within those territories.
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Where any party
against whom an interim order, whether by way of injunction or stay or in
any other manner, is made on, or in any proceedings relating to, a petition
under clause (1), without-
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furnishing to
such party copies of such petition and all documents in support of the
plea for such interim order; and
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giving such
party an opportunity of being heard, makes an application to the High
Court for the vacation of such order and furnishes a copy of such
application to the party in whose favour such order has been made or the
counsel of such party, the High Court shall dispose of the application
within a period of two weeks from the date on which it is received or from
the date on which the copy of such application is so furnished, whichever
is later, or where the High Court is closed on the last day of that
period, before the expiry of the next day afterwards on which the High
Court is open; and if the application is not so disposed of, the interim
order shall, on the expiry of that period, or, as the case may be, the
expiry of the said next day, stand vacated.
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The power conferred on a High Court by this Article shall
not be in derogation of the power conferred on the Supreme Court by clause
(2) of Article 32.
As can be observed in clause No. 1 in the Article 226
above, types of writ are:
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Mandamus writ
is issued to a public servant to perform some public or quasi-public legal
duty, which he has refused to perform and the performance of which cannot be
enforced by any other adequate legal remedy. This writ is also available
against inferior courts where they have refused to exercise their
jurisdiction when they are bound to do so.
Certiorari writ
is also issued against inferior courts in order to quash their order or
decisions which have been issued without having competent jurisdiction to do
so.
Prohibition
writ is issued to compel inferior courts to keep themselves within the
limit of their jurisdiction.
Haobeas corpus
writ is issued by a superior court to safeguard against arbitrary acts of
private persons and executives.
Writ of Quo
warranto is issued to inquire in to the legality of the claim that a
party asserts to a public office and to oust him from its enjoyment if the
claim is not well founded.
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where there is
inherent illegality in the proceedings or where the provision of law under
which the order was passed is itself unconstitutional;
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where the
impugned order infringes the fundamental rights of the party;
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where the
statutory authority has failed to carry out its statutory duty;
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where the order
or decision is actuated by extraneous or mala fide considerations;
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where a
decision of quasi-judicial authority is vitiated by error of law apparent on
the face of the record;
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where there is
contravention of requirements of principles of natural justice;
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where there is
inherent lack of jurisdiction;
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where no
alternate remedy is provided by the statute;
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where the
statutory remedy is not adequate or is onerous or resort to statutory remedy
would cause irreparable injury to the petitioner.
Mere existence of alternative remedy is not enough to deny
the maintainability of writ. The alternative remedy must be efficacious. If it
is shown to the satisfaction of the Court that though the remedy is available,
it is onerous, the Court may invoke its writ jurisdiction. The question of
efficacious alternative remedy therefore, has to be considered by the Court
before going into the merits of the case.
Article 226 places two limitations upon the exercise of
these powers by the High Court-
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The writ issued
by the court cannot run beyond territory subject to its jurisdiction.
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The authority
to whom High Court is empowered to issue the writs must be amenable to the
jurisdiction of the court either by residence or by location.
It was held that the Madras High Court has no jurisdiction
to entertain writ petition irrespective of the fact that president of the
petitioner is resident of Chennai as the Registered office of the petitioner
is located in Mumbai.
Indian Institute of Architects vs. Union of India 2000
(121) ELT 609 (Mad.)
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Petitioner
bound by the terms of contract to refer dispute, if any, to the arbitrator –
Approached High Court to invoke extra-ordinary powers of the Court under
Article 226 of the Constitution of India. It was held that the writ petition
not maintainable as alternative remedy is available – Naresh Kumar Gupta
vs. Union of India (2001) 1 J & K Law Reporter 464.
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Even when
fundamental rights have been infringed, a High Court cannot grant relief
against the authority is located outside its territory – Election
Commission vs. Saka Venkata 1953 SCR 1144 (1158).
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The powers of
the High Court under Article 226 are discretionary and no limits are placed
on the discretion. However, it must be exercised along recognized lines and
not arbitrarily, and subject to certain self imposed limitations –
Sangram vs. Election Tribunal (1955) I SCR (18)
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High Court
jurisdiction is supervisory in nature – Chandigarh Administration vs.
Manpreet Singh (1192) I SCC 380
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High Court is
not be interfere in the matter when appeal filed by the assessee himself is
pending before the Tribunal – Suttons & Sons (India) P. Ltd. vs. Union of
India 1995(75) ELT 229 (Cal).
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The Court sits
in judgment only on the correctness of the decision making process and not
on the correctness of the decision itself – H.B. Gandhi vs. Gopinath 1992
Supp. 2 SCC 312.
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7. It is
settled position of law that the High Court has the power to entertain a
petition under Article 226 of the Constitution of India, where the impugned
action of the executive authority is without jurisdiction or is likely to
subject a person to lengthy proceedings and unnecessary harassment – S.B
Construction Company vs. Union of India D B Civil Writ Petition No.
4089 of 2005, HC Raj, Guljag Industries Ltd. vs. State of Rajasthan & Anr.
129 STC 3.
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Article 226 of
Constitution of India – Natural justice – show cause notice dated 1-11-2004
was received by petitioner under letter dated
27-10-2005 – relied upon docu-ments were received on 23-11-2005 – unrelied
upon documents were received on 21-12-2005 - petitioner sought one month’s
time for filing reply and adjournment of hearing fixed on 26-12-2005 - case
decided ex parte on 28-12-2005 – invocation of writ jurisdiction is
warranted – Commissioner’s order is set aside and case remanded – if no
reply is filed within 3 weeks, impugned order shall stand restored –
Silicon Graphic System (India) P. Ltd. vs. Union of India & Anr. 2006 (74)
RLT 229 (Bom.)
In normal cases, an appeal under service tax lies with the
appropriate Appellate Authority, which the readers are well aware of. However,
there are certain extraordinary circumstances as mentioned above under which
Article 226 of the Constitution can be invoked for filing the writ petition in
the Court. |
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