2021 (11) TMI 1162 - HC - VAT and Sales Tax

Maintainability of petition - availability of alternative remedy - Demand of differential amount of tax and penalty under Section 27 (3) (c) of the TNVAT Act, 2006 - stock transfer to its depot - partial production of Form F from the depot located outside the State - HELD THAT - On perusal of the impugned order and the notice that preceded the issue of the impugned order. The petitioner has also filed form F for a value of Rs. 32,68,439/-. The correctness of those form F cannot be determined under Article 226 of the Constitution of India as the scope of interference under Article 226 is limited with wide powers. Considering the same, liberty is given to the petitioner to work out the alternate remedy, either under Section 51 of the TNVAT Act or under Section 84 of the TNVAT Act, within a period of 30 days from the date of receipt of a copy of this order. Registry is directed to return the original impugned order to the petitioner. Petition disposed off.

Summary

Issues:
Challenge to assessment order for the assessment year 2014-15 under TNVAT Act, 2006; Revision of impugned order due to procurement of additional Form F; Alternative remedies available under Sections 51 and 84 of TNVAT Act; Scope of interference under Article 226 of the Constitution of India.

Analysis:
The petitioner contested an assessment order dated 01.10.2021 for the assessment year 2014-15, challenging the tax determination of Rs. 6,56,812 under Section 27 (3) (c) of the TNVAT Act, 2006. The petitioner argued that a stock transfer to its depot for a turnover of Rs. 1,51,13,422 was partially covered by Form F from an out-of-state depot, with additional Form F for Rs. 32,68,439 obtained post-assessment. The petitioner claimed no suppression of facts, citing loss of forms during a flood and requests for forms from the Sales Tax Department of another State.

The respondent opposed the revision request, highlighting alternative remedies under Sections 51 and 84 of the TNVAT Act for appeal and revision, respectively, emphasizing no time limit for producing forms. Reference was made to a Full Bench decision regarding C Forms under the Central Sales Tax Act, 1956, emphasizing the importance of timely submission of forms during assessments.

Upon hearing both parties, the Court acknowledged the petitioner's submission of Form F for Rs. 32,68,439 but limited its interference under Article 226 of the Constitution of India. The Court granted the petitioner 30 days to pursue remedies under Sections 51 or 84 of the TNVAT Act, directing the return of the original impugned order. The writ petition was disposed of with no costs, concluding the matter and closing the connected miscellaneous petition.