IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO.8076 OF 2009 (Arising out of S.L.P. (C) No.7194 of 2008)

Bharat Petroleum Corporation Limited       ...Appellant(s)

Versus

State of Punjab & Ors.                    ...Respondent(s)

O  R  D  E  R

Heard learned counsel on both sides.

Leave granted.

Writ Petition was filed by the appellant-assessee  

[Bharat  Petroleum  Corporation  Limited]  under  Rule  21(1)  

and Rule 21(2) of the Punjab Value Added Tax Rules, 2005.  

The case of the appellant was that the Order of Assessment  

disallowing input tax credit on the purchase value of the  

product was illegal.  This Assessment Order was challenged  

by the appellant before the High Court by way of writ  

petition  without  exhausting  statutory  remedy  of  appeal  

under the Punjab  Value Added  Tax Act, 2005.  In the  

circumstances, vide impugned judgment, the High Court has  

dismissed  the  writ  petitions  directing  the  appellant  

herein to exhaust the statutory remedy.  However, after  

directing the  assessee to  exhaust the  statutory remedy,

...2/-

- 2 -   

the High Court has made observations on the merits of the  

case.  Hence, this civil appeal.

We are of the view that it would be open to the  

assessee to challenge the Order of Assessment by filing  

appeal  before  the  First  Appellate  Authority  which  will  

decide  the  matter  on  merits,  uninfluenced  by  the  

observations  made in  the impugned  judgment of  the High  

Court.  The appeal, if any, to be filed by the assessee  

within a period of four weeks.  If appeal is so filed,  

then, the Appellate Authority will decide the matter in  

accordance with law.

The civil appeal is allowed accordingly.

......................J.            [S.H. KAPADIA]

......................J.            [AFTAB ALAM]

New Delhi, December 04, 2009.