2005 (8) TMI 628 - HC - VAT and Sales Tax

Summary

Issues:
1. Maintainability of writ petition without exhausting appeal provision under section 31 of the Tamil Nadu General Sales Tax Act, 1959.
2. Request for discretionary power by the court in the absence of provision for waiver of compulsory deposit for availing appeal provision.
3. Consideration of bank guarantee as a substitute for deposit of 25 per cent of the admitted amount.

Analysis:
1. The writ appeal was filed challenging the order of the learned single Judge, who dismissed a writ petition on the grounds that there was an effective remedy through an appeal under section 31 of the Tamil Nadu General Sales Tax Act, 1959. The court noted that the appellant had not exhausted the appeal provision before filing the writ petition, leading to the dismissal of the petition.

2. The appellant's counsel requested the court to exercise discretionary power based on a previous court decision and the absence of a provision for waiving the compulsory deposit required for the appeal. However, the court emphasized that the authority was justified in insisting on the deposit before entertaining the appeal, as there was no provision for waiver. The court clarified that until the government made necessary provisions, no contrary direction could be issued.

3. The appellant sought permission to furnish a bank guarantee instead of depositing 25 per cent of the admitted amount. The court highlighted that there was no provision allowing for a bank guarantee as a substitute for the required deposit under the statute. The court reiterated that without such a provision, the claim made by the appellant's counsel could not be accepted. Consequently, the court found no error or infirmity in the order of the learned single Judge and dismissed the appeal along with the associated miscellaneous petition.

In conclusion, the court upheld the dismissal of the writ petition, emphasizing the importance of exhausting the appeal provision before resorting to a writ petition. The court also clarified that in the absence of specific provisions for waiver or alternative modes of compliance, the statutory requirements must be adhered to.