2002 (7) TMI 768 - HC - VAT and Sales Tax

Summary

Issues:
1. Appeal against order of Tamil Nadu Taxation Special Tribunal.
2. Delay in filing second appeal before Sales Tax Appellate Tribunal.
3. Petitioner's remedy after rejection of rectification petition.

Analysis:
1. The writ petition was filed against the order of the Tamil Nadu Taxation Special Tribunal, which rejected the appeal challenging the original assessment order. The petitioner had not filed a second appeal within the prescribed period, leading to the Tribunal refusing to interfere with the original assessment order. The High Court set aside the Tribunal's order, allowing the petitioner to file an appeal within 15 days. The Court directed that if no appeal was filed, the respondents could proceed with tax recovery based on the original assessment order.

2. The petitioner had the option to file a second appeal before the Sales Tax Appellate Tribunal after the rejection of the appeal by the Appellate Assistant Commissioner. Instead, the petitioner filed a rectification petition within the statutory period for the second appeal. The rectification petition was disposed of after the limitation period for the second appeal had expired. The High Court noted that the petitioner should have approached the Sales Tax Appellate Tribunal to condone the delay in filing the second appeal after the rejection of the rectification petition. The Court emphasized that the reason for not filing the second appeal earlier was valid, and therefore, set aside the Tribunal's order.

3. After the rejection of the rectification petition, the petitioner should have sought to condone the delay in filing the second appeal before the Sales Tax Appellate Tribunal. The High Court highlighted that this issue was not raised or decided by the Taxation Special Tribunal. The Court directed the petitioner to file an appeal within 15 days, ensuring that the appeal would be considered on its merits without considering the question of limitation. The respondents were permitted to proceed with tax recovery if no appeal was filed within the specified period.