2007 (3) TMI 708 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to levy of additional sales tax under Tamil Nadu Additional Sales Tax Act, 1970 for a specific period.

Analysis:
The petitioner filed a petition before the Tribunal challenging the levy of additional sales tax on the taxable turnover reported for a particular period. The petitioner argued that the levy was against the provisions of the Tamil Nadu Additional Sales Tax Act, 1970 and beyond the taxing powers of the respondent. The original petition was converted to a writ petition upon transfer to the High Court.

The respondent had issued a proposal notice to levy additional sales tax on a taxable turnover after deducting a certain amount. Despite the petitioner's objections, the respondent passed the order levying additional sales tax for the specified period. The petitioner requested a revision of the assessment, which was not accepted. It was contended that the levy for that period exceeded the respondent's powers as the taxable turnover did not exceed a certain limit.

Upon hearing arguments from both sides and examining the assessment order, it was noted that the proposal for additional sales tax was duly served on the dealer, and the petitioner did not raise any objections until after the assessment order was passed. The assessing officer determined the turnover to be taxed, and no appeal was filed for several years until the challenge in 2004.

The High Court observed that the matter in the writ petition was appealable under the Tamil Nadu General Sales Tax Act, 1959. The petitioner had the option to appeal before the first appellate authority. Citing relevant decisions, the court emphasized that it was not delving into the merits of the case due to unexplained delays on the part of the petitioner for over six years.

The High Court disposed of the writ petition with no costs, and the connected miscellaneous petition was closed accordingly.