9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (4) TMI 632 - HC - VAT and Sales Tax
Issues:
- Jurisdiction of civil court to grant injunction against assessment under the Tamil Nadu General Sales Tax Act, 1959. Analysis: The appellant, a partnership firm funded by the Tamil Nadu Industrial Investment Corporation (TIIC), faced legal action after a raid by the commercial tax authority in 1983. The appellant filed a suit for declaration and injunction against the Deputy Commercial Tax Officer, which was decreed in 1991. Subsequently, the appellant filed a petition for executing the decree, but it was dismissed. The Revenue authorities then issued a notice directing the appellant to pay a sum, which was challenged in a writ petition dismissed by the court. The appellant contended that since a civil court had issued a decree restraining proceedings against the property, no further action could be taken. However, the Revenue argued that Section 51 of the Tamil Nadu General Sales Tax Act, 1959, prohibits civil courts from granting injunctions against assessments made under the Act. The court examined Section 51 of the Act, which clearly bars suits or proceedings in civil courts to set aside or modify any assessment made under the Act. It also prohibits civil courts from granting injunctions in respect of any assessment or action taken under the Act. The court emphasized that the Act provides a comprehensive mechanism for assessment and recovery, and when there is a specific prohibition, civil courts lack jurisdiction to entertain suits or grant injunctions. The judgment highlighted that sales tax laws constitute a self-contained code with provisions for assessment, demand, and recovery, and Section 51 restricts civil courts from interfering in actions taken under the Act. Therefore, the decree obtained by the appellant in the civil court could not shield them from coercive or recovery proceedings initiated under the Act. The court upheld the order of the single judge, stating that it was legally sound and based on valid evidence, thus dismissing the writ appeal without costs.
|
