Analytical Video :

Introduction

This judgment addresses the maintainability of a writ petition challenging a GST demand arising from scrutiny of returns, where the taxpayer alleged that the adjudicating authority failed to properly consider its explanation before confirming the demand. The dispute arose from an alleged mismatch between the Input Tax Credit (ITC) claimed in GSTR-3B and the ITC reflected in GSTR-2A/2B.

While the Orissa High Court declined to examine the merits of the demand due to the availability of an alternative statutory remedy under Section 107, it granted substantial relief by directing that if the petitioner filed an appeal within seven days, the appellate authority should treat it as having been filed within the prescribed limitation period and decide the matter on merits. Thus, although the Court reaffirmed the doctrine of exhaustion of statutory remedies, it ensured that the taxpayer was not prejudiced for having first approached the High Court.