2015 (12) TMI 371 - HC - VAT and Sales Tax

Determination of the total and taxable turnover - respondent has returned the appeal papers filed by the petitioner on the ground that the appeals were filed based on the revised assessment orders made under Section 84 of the Act - Held that - Originally, assessment orders were passed for the assessment year in question. Aggrieved over the same, he filed rectification petitions under Section 84 of the Act before the 2nd respondent, in and by which, orders were passed reducing the taxable turnover for the respective years. Since the documents filed by the petitioner in respect of certain aspects have not been considered by the 2nd respondent, the petitioner filed appeals before the 1st respondent under Section 51 of the Act read with Section 9(2) of the CST Act, 1956, remitting 25% of the disputed tax for each of the assessment years. The 1st respondent, while returning the appeal papers by the impugned orders, has stated that the appeals are not maintainable, since revision will only lie as against the orders under Section 84 of the Act. - petitioner is permitted to file revision petitions under Section 54 of the TNVAT Act, along with stay applications, as against the orders passed under Section 84 of the TNVAT Act - there shall not be any recovery proceedings against the petitioner, since the petitioner had already remitted 25% of the disputed taxes. - Petition disposed of.

Summary

Issues:
Challenge to orders of 1st respondent, direction to admit and dispose appeals on merits.

Analysis:
The petitioner, a registered dealer under TNVAT Act and CST Act, challenged orders of the 1st respondent regarding determination of total and taxable turnover. The petitioner filed declarations for revision of assessments, specifically related to bond transfer and direct export sales, which were not considered by the 2nd respondent. Appeals were filed before the 1st respondent, who returned them stating they were based on revised assessment orders under Section 84 of the Act. The petitioner argued that the assessments were made under Section 22 of the Act, not Section 84, and the appeal provision should apply as per Section 84(5) of the Act. The petitioner contended that the impugned orders returning the appeals were against the principles of natural justice.

The Additional Government Pleader argued that as per Section 54 of the TNVAT Act, revision lies against orders passed under Section 84 of the Act, and hence, the 1st respondent rightly returned the appeal papers. The court considered the submissions and the record, noting that assessment orders were passed initially, and rectification petitions under Section 84 were filed, leading to reduced taxable turnover. The petitioner then filed appeals under Section 51 of the Act, but the 1st respondent returned them, stating that revision lies only against orders under Section 84 of the Act.

The court allowed the petitioner to file revision petitions under Section 54 of the TNVAT Act against the orders passed under Section 84, within two weeks, along with stay applications. The revisional authority was directed to entertain the petitions without raising any issue of limitation and to pass appropriate orders within two weeks. The court specified that no recovery proceedings should take place during the consideration of stay applications, as the petitioner had already remitted 25% of the disputed taxes. The revision petitions were to be heard and disposed of within six weeks, providing due opportunity to the petitioner. The writ petitions were disposed of with no costs, and connected miscellaneous petitions were closed.