2007 (3) TMI 710 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of section 88 of the Tamil Nadu Value Added Tax Act, 2006.
2. Validity of rejecting the application under section 16D of the TNGST Act.
3. Rights and liabilities accrued under the TNGST Act post-repeal.

Analysis:
1. The petitioner claimed exemption on sales for the assessment year 1996-97 under the TNGST Act. The assessing authority assessed certain values to tax without issuing a pre-assessment notice. The petitioner invoked section 16D of the TNGST Act post-repeal, but the application was rejected based on section 88 of the Tamil Nadu Value Added Tax Act, 2006. The petitioner argued that accrued interest and vested rights cannot be divested by the repealed Act. Citing a Supreme Court decision, it was contended that rights and liabilities under the former Act continue post-repeal. The court agreed, stating that the vested right accrued to the petitioner for invoking section 16D cannot be divested, setting aside the rejection and remitting the issue back for reconsideration.

2. The rejection of the application under section 16D was challenged on the grounds that the repealed Act saved certain actions under the TNGST Act. The court found that the rights of the petitioner under the TNGST Act were saved by the Repealed Act, and the reason for rejection was not legally sustainable. The order was set aside, emphasizing the importance of considering the point of laches in the reassessment.

3. The court concluded by disposing of the writ petition without costs and closing the related miscellaneous petition. The judgment highlighted the significance of preserving accrued rights and ensuring proper consideration of legal provisions in matters of assessment and repeal of tax laws.