2019 (2) TMI 2012 - HC - VAT and Sales Tax

Validity of assessment order - sufficient opportunity was not granted to the petitioner in the assessment proceedings - violation of principles of natural justice - Section 51 of the TNVAT Act 2006 - HELD THAT - Except making an averment in the affidavit that the petitioner had personally met the second respondent and requested him to furnish the details as well as the transportation documents pertaining to the alleged purchase made by the petitioner from M/s. Britto Saw Mill and Timbers to the tune of ₹ 37,05,000/-, there is no other written communication sent by the petitioner to the respondent duly acknowledged by them requesting for producing details as well as documents pertaining to the alleged purchase of the petitioner from M/s. Britto Saw Mill and Timbers. Admittedly, there is a statutory appellate remedy under Section 51 of the TNVAT Act, 2006 available to the petitioner, which he has not exercised in the instant case. The reason given by the petitioner for not exercising the statutory appellate remedy cannot be accepted by this Court, since there is no acknowledgement made by the respondents that a request was made by the petitioner for production of details and documents pertaining to the alleged purchases made by the petitioner from M/s. Britto Saw Mill and Timbers, except an averment made by the petitioner in the affidavit in support of the writ petition that he made a personal request to the second respondent for production of the details and documents pertaining to the alleged transaction. This Court is of the considered view that the principles of natural justices has not been violated by the respondents, while passing the impugned assessment order. However the statutory right of appeal available to the petitioner should not be deprived, just because the petitioner has chosen a wrong forum for ventilating his grievance - In the instant case, the petitioner has approached this Court under the Article 226 of the Constitution of India, instead of filing the statutory appeal under Section 51 of the TNVAT Act, 2006. This Court grants liberty to the petitioner to prefer an appeal before the Appellate Authority under Section 51 of the TNVAT Act, 2006 against the impugned assessment order - Petition disposed off.

Summary

Issues: Challenge to assessment order, violation of principles of natural justice, availability of statutory appellate remedy.

Analysis:
1. Challenge to Assessment Order: The petitioner challenged the assessment order dated 22.01.2016 passed by the second respondent in TIN. No. 33475565499/2014-15. The petitioner claimed that there was a lack of opportunity granted during the assessment proceedings and that the required documents were not provided by the second respondent. The assessment order stated that the petitioner did not report the purchase of imported Kwilla Logs, leading to a revision of assessment and the imposition of tax and penalty.

2. Violation of Principles of Natural Justice: The petitioner argued that despite personally meeting the second respondent and requesting details of transportation documents related to the alleged purchases, the second respondent passed the assessment order without providing the requested information. The petitioner contended that this action violated the principles of natural justice. However, the court observed that there was no written communication or acknowledgment of the petitioner's request for documents from the respondent. The court noted the availability of a statutory appellate remedy under Section 51 of the TNVAT Act, which the petitioner did not utilize before approaching the court under Article 226 of the Constitution of India.

3. Availability of Statutory Appellate Remedy: The court held that the principles of natural justice were not violated by the respondents in passing the assessment order. It emphasized that the petitioner should not be deprived of the statutory right of appeal merely for choosing the wrong forum to address grievances. The court granted liberty to the petitioner to file an appeal before the Appellate Authority under Section 51 of the TNVAT Act, 2006 within four weeks from the date of the court's order. The Deputy Commissioner, Tirunelveli, was designated as the Appellate Authority to consider the appeal on its merits and in accordance with the law.

In conclusion, the court disposed of the Writ Petition, directing the registry to return the original impugned order to enable the petitioner to file an appeal. No costs were imposed, and connected miscellaneous petitions were closed.