2013 (7) TMI 900 - HC - VAT and Sales Tax

six months is a period prescribed for filing a revised return nine months is a prescribed for filing an audited statement of accounts. Only when a Chartered Accountant audits the account and points out the error one could file a revised returns. Therefore the revised return has to be necessarily beyond six months and beyond 9 months.

Summary

Issues:
- Challenge to rejection of writ petition based on availability of alternative remedy
- Interpretation of statutory provisions regarding filing of revised returns and audited accounts
- Validity of time limits for filing revised returns under Section 35(4) of KVAT Act

Analysis:

The appellant, a registered company under the Karnataka Value Added Tax Act, challenged the rejection of his writ petition by the learned single Judge based on the availability of an alternative remedy of appeal. The appellant submitted monthly returns for the tax periods of January, February, and March 2008, claiming input tax credits in accordance with the Act. The accounts were audited by a Chartered Accountant as required for taxable turnovers exceeding a certain limit. It was discovered during the audit process that the input tax credit claims were understated in the original returns. Consequently, revised returns were filed beyond the prescribed six-month limit, seeking a refund based on the corrected input tax credits. The rejection of the revised returns by the respondent was challenged in the writ petition, questioning the validity of the six-month time limit for filing revised returns under Section 35(4) of the Act.

The appellant argued that the time limits for filing revised returns and audited accounts were conflicting, as the need for revision arises only after the audit process reveals errors. Therefore, the appellant contended that the rejection based on the six-month limit was illegal and arbitrary. The appellant sought various reliefs in the writ petition, including a declaration of the six-month time limit as void, quashing of the rejection endorsement, and acceptance of the revised returns for the relevant tax periods. The appellant emphasized that the High Court, under its jurisdiction, should examine the validity of statutory provisions like Section 35(4) of the KVAT Act, as the Appellate Authority cannot address the constitutionality or arbitrariness of such provisions.

The High Court, comprising Kumar N. and Kempanna H. S., JJ., allowed the writ petition, setting aside the order of the learned single Judge. The court remanded the case back to the single Judge to consider the validity of Section 35(4) of the KVAT Act. The court held that the writ court has the authority to review the legality and constitutionality of statutory provisions, emphasizing that the rejection based on the availability of an alternative remedy was not justified. The judgment highlighted the importance of the High Court's role in assessing the validity of statutory provisions and ensuring a harmonious interpretation of conflicting provisions within the law.