S. S Enterprises Vs Union of India (Madhya Pradesh High Court)
The Madhya Pradesh High Court considered a writ petition challenging an adjudication order confirming a GST demand of ₹53.29 crore along with an equal amount of penalty and directing appropriation of ₹66.43 lakh seized from the petitioner’s residence. The petitioner invoked writ jurisdiction under Articles 226 and 227, alleging violation of principles of natural justice on the ground that relevant documents were not supplied and no opportunity of cross-examination was granted. The respondent raised a preliminary objection, contending that an effective statutory remedy of appeal was available under Section 107 of the CGST Act, and relied on Supreme Court precedents discouraging writ intervention where alternate remedies exist. After hearing both sides, the Court declined to examine the merits of the dispute. It disposed of the writ petition by granting liberty to the petitioner to file an appeal before the Appellate Authority within ten days, along with an application for stay. The Court directed that if the appeal is filed within the stipulated period, the Appellate Authority shall decide the stay application and appeal expeditiously on merits. Until the stay application is considered, no coercive action was permitted pursuant to the impugned order. The Court clarified that it had expressed no opinion on merits and that the Appellate Authority should decide the matter independently. Failure to file the appeal within ten days would result in automatic cessation of interim protection.
