Source: Allahabad High Court

Why in News?

Recently, the Allahabad High Court in the matter of M/S Falguni Steels v. State of U.P. & Ors., has held that the writ of certiorari is not issued as a matter of course, but rather it is granted at the discretion of the Superior Court.

What was the Background of M/S Falguni Steels v. State of U.P. & Ors.?

• In this case, the petitioner is an authorized dealer of the Steel Authority of India Ltd. (SAIL).
• On February 17, 2019, the petitioner purchased a consignment under the tax invoices which were issued by SAIL in accordance with the provisions of the Central Goods and Services Tax Act, 2017 (CGST Act).
• Thereafter, the petitioner obtained the service of a private road carrier for the transportation of its goods. The tax invoices contained the number of the said vehicle.
• The petitioner alleged that during the relevant time, the e-Way Bill portal of the Department was marred by glitches and technical shortcomings and owing to the said fact, e-Way Bills on several occasions could not be generated.
• The penalty order under Section 129 of the CGST Act was passed on the grounds that the goods of the petitioner were not accompanied by the e-way bill. Subsequently, the first appellate authority upheld the penalty order.
• Thereafter the instant petition was filed by the petitioner before the High Court praying for the issuance of a writ of certiorari against the order.
• The High Court allowed the petition.

What were the Court’s Observations?

• Justice Shekhar B. Saraf observed that the writ of certiorari is not issued as a matter of course, but rather it is granted at the discretion of the superior court to review and quash decisions of lower courts, tribunals, or administrative bodies Generally, certiorari is issued in cases involving errors of law apparent on the face of the record, jurisdictional issues, or procedural irregularities that may have a substantial impact on the fairness and legality of the proceedings.

What are the Relevant Legal Provisions?

Writ of Certiorari

About:

• It is a Latin phrase that means ‘to be fully be informed.’
• It is a command or order issued by the Superior Court to the inferior court.
• It is issued when the inferior courts violate the principles of natural justice.
• The Superior Court can quash the order given by the inferior court, if it finds any error.
• It plays a pivotal role in ensuring the rule of law and judicial oversight over administrative actions, providing a mechanism to correct errors and prevent the abuse of power.

Case Laws:

• In Nagendra Nath Bora and Anr v. The Commissioner of Hills Division and Appeal, Assam and Ors. (1958), the Supreme Court upon examining various Indian and English precents, came to the conclusion that in that case an inferior tribunal has exceeded its jurisdiction or has not acted in accordance with the law, a writ of certiorari can be issued.
• In Central Council for Research in Ayurvedic Sciences and Anr v. Bikartan Das and Ors. (2023), the Supreme Court held that the writ of certiorari can be issued to correct errors of jurisdiction.

CGST Act

• This Act makes provision for levying and collection of tax on intra-State supply of goods or services or both by the Central Government and for matters connected therewith.
• Section 129 of this Act deals with the detention, seizure and release of goods and conveyances in transit.