1981 (12) TMI 150 - HC - VAT and Sales Tax

Summary

Issues:
1. Challenge to the validity of section 24(3) of the Tamil Nadu General Sales Tax Act.
2. Right of revision to the Deputy Commissioner, Commercial Taxes under sections 33 and 35 of the Act.
3. Discrepancy in the monthly returns filed by the petitioner for December 1977.
4. Imposition of penalty under section 24(3) for delayed payment of sales tax.

Detailed Analysis:
1. The petitioner, a dealer in motor cars and automobile spares, challenged the validity of section 24(3) of the Tamil Nadu General Sales Tax Act, contending that the section did not provide an opportunity for the assessee to object to the levy of penalty. The petitioner's counsel argued that similar provisions in the Income-tax Act allowed for a reasonable opportunity to be heard before imposing penalties. However, the court held that section 24(3) of the Act, which mandates a penalty for delayed payment of assessed tax without discretion for assessing authorities, was valid and enforceable. The court emphasized that the legislature had the power to enact such stringent provisions for effective tax recovery.

2. The petitioner had the right of revision to the Deputy Commissioner, Commercial Taxes, under sections 33 and 35 of the Act. The counsel for the petitioner raised concerns about the timeliness of filing a revision due to pursuing the writ petition. The court acknowledged the possibility of delay and allowed the petitioner to approach the Deputy Commissioner for condonation of any such delay, considering the petitioner's bona fides.

3. The petitioner's case stemmed from a discrepancy in the monthly returns filed for December 1977. Upon discovering the error, the petitioner filed a revised return in July 1981, accompanied by the payment of sales tax, surcharge, and additional tax. However, the first respondent imposed a penalty under section 24(3) for the delayed payment, leading to the petitioner challenging this decision through the writ petition.

4. The court ultimately dismissed the writ petition challenging the communication imposing the penalty under section 24(3). Despite the dismissal, the petitioner was granted liberty to approach the revisional authority under section 33, with the court acknowledging the potential need for condonation of any delay in filing the revision due to pursuing the writ petition.