1986 (10) TMI 318 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to sales tax assessment under Kerala General Sales Tax Act and Central Sales Tax Act based on alleged double taxation and violation of fundamental rights under article 19(1)(g) of the Constitution of India.

Analysis:
The petitioner challenged the sales tax assessment orders for the assessment year 1981-82 under both the Kerala General Sales Tax Act and the Central Sales Tax Act, arguing that the assessment amounted to double taxation and violated their fundamental rights under the Constitution. The main contention was that the assessment was made on the assumption that the business was a joint venture, leading to alleged double taxation without legal authority. However, the petition did not specifically detail how the assessment proceedings infringed the petitioner's fundamental rights.

The Special Government Pleader representing the respondents contended that the petitioner had a statutory remedy to challenge the assessment orders on all grounds raised in the petition. Referring to recent Supreme Court decisions, it was emphasized that the existence of an alternative remedy would preclude relief through a writ petition. The petitioner's reliance on earlier court decisions was countered by highlighting the importance of following the statutory remedy provided for challenging assessment orders.

The Supreme Court's stance in previous cases was discussed, emphasizing that the availability of an alternative remedy does not always bar the issuance of a writ of certiorari in cases involving violations of natural justice and fundamental rights. The petitioner's argument that arbitrary and capricious imposition of sales tax infringed their fundamental right to carry on business was countered by the requirement to exhaust statutory remedies before seeking relief through a writ petition.

The court noted that recent Supreme Court pronouncements emphasized the need to avail the special remedies provided by statutes when a right or liability is created under such statutes. The hierarchy of authorities and appeal mechanisms outlined in the relevant Acts were highlighted as the appropriate channels for challenging assessment orders. It was reiterated that resorting to Article 226 of the Constitution should not bypass statutory procedures, especially in revenue-related matters where statutory remedies are available.

In conclusion, the court dismissed the original petition, emphasizing that the petitioner had the right to challenge the assessments through the prescribed appellate and revision mechanisms provided under the Kerala General Sales Tax Act. The availability of alternative remedies precluded the petitioner from obtaining the reliefs sought through the writ petition. The judgment was issued accordingly, dismissing the petition.