1991 (8) TMI 296 - HC - VAT and Sales Tax

Summary

Issues:
- Rejection of revision petitions by the Deputy Commissioner under section 32 of the Tamil Nadu General Sales Tax Act, 1959, due to an amendment taking away suo motu powers.
- Contention regarding the revisional authority's obligation to consider revision petitions filed before the amendment.
- Application of the principle of audi alteram partem and principles of natural justice in the decision-making process.

Analysis:

The petitioners, a society assessed for tax by the Deputy Commercial Tax Officer, challenged the rejection of their revision petitions by the Deputy Commissioner under section 32 of the Tamil Nadu General Sales Tax Act, 1959, due to an amendment stripping the Deputy Commissioner's suo motu powers. The petitioners had filed revision petitions before the amendment, believing the principles set by the Sales Tax Appellate Tribunal would be followed. The rejection of the revision petitions solely based on the subsequent amendment was deemed unsustainable in law. Citing a Full Bench decision, it was argued that the revisional authority should have considered the petitions on their merits, irrespective of the amendment affecting suo motu powers.

The court emphasized that the revisional power under section 32 could not be denied based on a subsequent amendment withdrawing such powers. The Deputy Commissioner, having the authority to revise orders before the amendment, should have entertained the revision petitions filed by the petitioners pre-amendment. The failure to provide an opportunity for the petitioners to present their case and the absence of notice violated the principles of natural justice, specifically the audi alteram partem rule. Consequently, the impugned order was quashed, directing the Deputy Commissioner to entertain and decide the revision petitions on their merits in line with the Sales Tax Appellate Tribunal's legal position on similar matters.

Therefore, the court allowed the writ petitions, emphasizing the importance of affording parties the opportunity to be heard and directing the Deputy Commissioner to reconsider the revision petitions in accordance with the law established by the Sales Tax Appellate Tribunal.