1994 (5) TMI 251 - HC - VAT and Sales Tax

Summary

Issues:
- Validity of eligibility certificate quantification
- Imposition of sales/entry tax under State/Central Act
- Validity of assessment order
- Alternative remedy availability
- Proper jurisdiction for correction of certificate

Analysis:

The petitioner, a company engaged in manufacturing aluminum chloride and other products, obtained an eligibility certificate under an exemption scheme for new industrial undertakings. The certificate contained a quantification of the product, which the petitioner contended was contrary to the prescribed form of the exemption scheme and the law. The petitioner sought a direction against the authorities to grant complete exemption without the specified quantum. The Assistant Sales Tax Commissioner imposed tax liability based on the certificate, leading to a challenge of the assessment order's validity.

The respondents argued that the petition lacked substance as the exemption could only be claimed for products covered by the eligibility certificate. The petitioner's counsel asserted that the quantification in the certificate was unauthorized and requested an amendment to enable the petitioner to benefit from the exemption scheme. The petitioner also sought quashing of the assessment order. Alternatively, the petitioner requested liberty to approach the revisional authority and District Industries Centre for certificate correction.

The Government Advocate contended that the petition was not maintainable due to the availability of alternative remedies. It was argued that the authority had the power to limit the certificate by specifying the product quantity. While the correction process was suggested to go through the District Level Committee, liberty to seek an alternative remedy was not opposed.

Citing a Supreme Court ruling, the judge highlighted that resorting to Article 226 and 227 of the Constitution was inappropriate if a satisfactory solution was available within the statute itself. The judge, inclined to grant liberty, found it unnecessary to delve into the merits of the case. Consequently, the petition was disposed of by refusing the reliefs sought but granting the petitioner liberty to pursue appropriate remedies against the assessment order and the eligibility certificate.

In the interest of justice and as per the petitioner's request, the interim stay order was extended until a specified date. The judgment concluded by granting the petitioner liberty to seek remedies by a certain deadline, leaving the authority free to consider the prayer and issue orders at its discretion. The petition was finally disposed of with the mentioned liberty but without any cost orders.