2007 (3) TMI 705 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to circular issued by authorities under Tamil Nadu General Sales Tax Act, 1959.

Analysis:
The petitioner-association claimed that their sales of ball bearings were mostly against form XVII declarations, covered under section 3(3) of the Act. Previously, ball bearings were taxed separately under section 3(2) until the Government of Tamil Nadu inserted section 3(5) and issued a circular in 2001. The petitioner argued that the circular was not in line with statutory provisions and should be invalidated. Individual assessees who sought similar relief were directed to have their assessments made by the assessing officer. The court emphasized that assessments must adhere to statutory provisions and not be solely based on circulars. The court clarified that circulars do not override statutory provisions, and assessments should be rectified through proper legal procedures if necessary.

The court noted that the petitioner-association, being a traders' association, lacked a cause of action to challenge the circular before the court. It was reiterated that assessments must strictly follow statutory provisions, and even without the circular, the assessing officer could apply section 3(5) of the Act. The court highlighted the protection provided to assessees, including issuing notices of proposal before assessment orders and allowing objections to be raised against proposals conflicting with statutory provisions. The court expressed that entertaining petitions based on internal correspondence between officers would not serve the intended purpose.

Ultimately, the court concluded that the petitioner-association had no grounds to approach the court, similar to individual assessees who were advised to address authorities. Consequently, the writ petition was dismissed without costs.