2016 (7) TMI 1423 - HC - VAT and Sales Tax

Principles of Natural Justice - non-communication to the appellant about the time granted up to 25th of April, the order has been passed on April 29, 2016 - Held that - since it was a matter pertaining to the breach of principles of natural justice on the basis of record itself, and on the record of the present proceedings, we find that the petitions may be entertained under article 226 of the Constitution. It is hardly required to be stated that existence of alternative remedy under article 226 of the Constitution is no bar to the power of this court but by way of self-imposed restriction, when alternative remedies are available under the respective statutes or before respective forum, this court may decline to entertain the petition - petition disposed off.

Summary

Issues:
1. Breach of principles of natural justice in passing the order without considering objections.
2. Availability of alternative remedy under Article 226 of the Constitution.
3. Directions for cancellation of the impugned order and restoration of the matter to the Assistant Commissioner of Commercial Taxes.
4. Setting aside the order of the learned single judge and allowing the appeals.
5. No order as to costs and permission for reporting the correct position of the judgment.

Analysis:

Issue 1 - Breach of principles of natural justice:
The appellant contended that the order was passed without considering their objections, leading to a breach of natural justice. The High Court acknowledged this contention and found that the petitions could be entertained under Article 226 of the Constitution due to the breach of natural justice. The court emphasized that the existence of alternative remedies does not bar its power but may decline to entertain the petition when such remedies are available.

Issue 2 - Alternative remedy under Article 226 of the Constitution:
The High Court recognized the availability of alternative remedies under Article 226 but decided to intervene due to the breach of natural justice in this case. The court clarified that while it could entertain the petition despite alternative remedies, it may choose not to do so as a self-imposed restriction.

Issue 3 - Directions for cancellation and restoration:
After reviewing the record and finding no evidence of communication regarding the granted time limit, the High Court directed the cancellation of the impugned order. The matter was restored to the Assistant Commissioner of Commercial Taxes for a fresh order after considering the objections and hearing the appellant's representative.

Issue 4 - Setting aside the order of the learned single judge:
The High Court set aside the order of the learned single judge and allowed the appeals to the extent of canceling the impugned order and restoring the matter for a fresh decision by the Assistant Commissioner of Commercial Taxes.

Issue 5 - No order as to costs and permission for reporting:
Considering the circumstances, the High Court made no order as to costs. Additionally, the appellant's counsel requested permission to report the correct position of the judgment, which the court granted.

This detailed analysis highlights the High Court's considerations regarding breach of natural justice, alternative remedies, cancellation of the order, setting aside the learned single judge's decision, and the permission for reporting the judgment accurately.