2016 (12) TMI 694 - HC - VAT and Sales Tax

Rectification of mistake - one important legal ground has not been raised by the petitioner both before the Assessing Officer and before the Appellate Authority - section 84 Act - Held that - Section 84 of the said Act gives power to the Assessing Authority, Appellate Authority, Revisional Authority including the Appellate Tribunal, at any time, within five years from the date of any order passed by it, to rectify any error apparent on the face of the record. It may be true that the petitioner has not raised this ground specifically in the grounds of appeal before the second respondent. Nevertheless, this being a legal contention, this Court is of the view that the petitioner can be granted one opportunity to raise the same before the Appellate Authority by way of an application under Section 84 of the said Act - the writ petition is disposed of by granting liberty to the petitioner to file an application under Section 84 of the said Act before the Appellate Authority in A.P.No.130/13 VAT within a period of 15 days from the date of receipt of a copy of this order. If such application is filed, the second respondent-Appellate Authority shall consider the same on merits and in accordance with law and pass a speaking order - decided in favor of petitioner-assessee.

Summary

Issues:
1. Appeal against order of assessment
2. Failure to raise legal ground before Appellate Authority
3. Forfeiture of tax collected and input tax credit
4. Opportunity to raise legal contention before Appellate Authority
5. Power to rectify errors under Section 84 of the Act

Analysis:
The judgment pertains to a writ petition filed by a dealer and assessee under the Tamil Nadu Value Added Tax Act, 2006, challenging an order passed by the Appellate Authority. The petitioner contended that an important legal ground was not raised before the Assessing Officer and the Appellate Authority. The court noted that the petitioner failed to file an appeal before the Sales Tax Appellate Tribunal within the prescribed time limit. However, the petitioner sought to raise a legal contention regarding the forfeiture of tax collected under Section 41 of the Act, which allows for the deduction of input tax credit on corresponding purchases.

The court acknowledged the legal nature of the contention raised by the petitioner and granted an opportunity to raise the issue before the Appellate Authority. Referring to Section 84 of the Act, which empowers authorities to rectify errors within five years from the date of the order, the court allowed the petitioner to file an application under Section 84 before the Appellate Authority within 15 days. The Appellate Authority was directed to consider the application on its merits and pass a speaking order in accordance with the law. The judgment concluded by disposing of the writ petition and closing the related proceedings without imposing any costs.