2009 (4) TMI 901 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to order directing payment of disputed tax as a pre-condition for revision petition.

Analysis:
The petitioner challenged an order by the revisional authority, requiring payment of the entire disputed tax before entertaining the revision petition. The petitioner had filed a revision petition against an assessment order under the Tamil Nadu Value Added Tax Act, 2006, along with a stay application. The impugned order stated that the revision petition would not be entertained unless the disputed tax was paid, citing section 54(4) of the Act. The petitioner approached the High Court against this order.

Section 54 of the Tamil Nadu Value Added Tax Act, 2006 allows for filing a revision against an order without appeal provisions. The procedure for filing a revision petition is detailed in sections 54(2) and 54(3), emphasizing the authority's power to examine and pass orders after an inquiry. Section 54(4) specifies that tax or other amounts should be paid as per the order being challenged, with the Deputy Commissioner having discretion to give directions on payment if sufficient security is provided.

The High Court noted that while the first respondent focused on the main provision of section 54(4), they failed to consider the proviso granting discretionary power to the Deputy Commissioner regarding payment conditions. The Court emphasized that the payment of disputed tax was not an absolute pre-condition under section 54(4), highlighting the need for the authority to exercise discretion lawfully. Consequently, the High Court allowed the writ petition, setting aside the impugned order and remitting the matter back to the first respondent for fresh consideration. The first respondent was directed to review the stay petition on its merits and issue appropriate orders within two weeks. The Court concluded by closing connected miscellaneous petitions without imposing costs.