2006 (10) TMI 393 - HC - VAT and Sales Tax

Summary

Issues: Challenge to communication of Commercial Tax Officer preventing communication through advocates for statutory notices.

Analysis:
The petitioner sought a writ of certiorarified mandamus to quash a communication from the Commercial Tax Officer dated October 10, 2005, which restricted communication through advocates for statutory notices. The impugned communication stated that legal practitioners were only authorized for appearance before authorities, not for making correspondence on behalf of dealers. The petitioner contested this restriction, citing Section 52 of the Tamil Nadu General Sales Tax Act, 1959, which allows representation by legal practitioners, relatives, or full-time employees of the dealer. Rules 49 and 51 of the Tamil Nadu General Sales Tax Rules, 1959, mandate filing an authorization in Form XIII for representation. The petitioner argued that the Act permits representation through attorneys unless specifically prohibited. The court noted that the impugned communication was unwarranted and set aside paragraphs 3, 4, and 5 of the order as illegal.

The court emphasized that the respondent's interpretation of the law was incorrect as Section 52 of the TNGST Act allows various representatives, not just advocates, to appear before taxing officers. The Act's broad language permits representation by relatives, full-time employees, or accountants of the dealer. The court highlighted that the Act does not grant a monopoly to advocates for representation. The respondent's communication wrongly restricted the dealer from sending proceedings through their lawyer. Consequently, the court deemed paragraphs 3, 4, and 5 of the impugned order as illegal and set them aside, allowing dealers to make representations through properly authorized attorneys.

In conclusion, the court found the impugned order restricting communication through advocates for statutory notices to be illegal and set aside the relevant paragraphs. The judgment clarified that the Tamil Nadu General Sales Tax Act allows representation by various authorized individuals, not limited to legal practitioners. Therefore, dealers are entitled to make representations through properly authorized attorneys, and any prohibition on such representation is unwarranted under the Act.