2007 (7) TMI 613 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order of assessment under Tamil Nadu General Sales Tax Act, 1959; Refusal to entertain appeal due to alleged limitation period violation.

Analysis:
The petitioner, a dealer in PVC pipes, tubes, and fittings, declared a total and taxable turnover for the assessment year 2004-05. The first respondent initially passed an order of assessment without considering a payment made by the petitioner, leading to a revised order being issued on August 21, 2006. Subsequently, the petitioner filed an appeal before the Appellate Assistant Commissioner (CT) VI, Chennai, within thirty days of receiving the revised order. However, the appeal was returned, requesting the petitioner to resubmit along with 25% of the disputed amount as a pre-condition.

The disputed tax amount was Rs. 9,38,400, with a penalty of Rs. 9,34,102. The petitioner, in the appeal memorandum, submitted the revised assessment order and made a payment of Rs. 3,11,365 as 25% of the disputed tax amount. The appeal was rejected by the second respondent on the grounds of being time-barred, as the pre-deposit was made beyond thirty days from the original assessment order. The petitioner then filed a writ petition challenging the rejection of the appeal.

The petitioner argued that since the original order was modified and merged into the revised order, the appeal should be considered timely from the date of the revised order, not the original one. The High Court agreed, stating that once a revised order is issued, the earlier order ceases to exist, and the limitation for filing the appeal should be calculated from the date of the revised order. Therefore, the refusal to entertain the appeal based on limitation was deemed erroneous.

Consequently, the High Court directed the second respondent to entertain the appeal and make a decision on its merits within six weeks. The writ petition was disposed of with no costs, and the connected miscellaneous petition was closed.