2019 (6) TMI 1137 - HC - VAT and Sales Tax

Validity of assessment order - principles of natural justice - alternative remedy - corrigendum to Form WW - HELD THAT - It is nobody's case that the Authority has passed the impugned orders without jurisdiction. With regard to NJP, it is revealed that personal hearing has admittedly been granted to the writ petitioner. It is also nobody's case that alternate remedy is ineffective, ineffectual or not efficacious. Corrigendum to Form WW - the issue shall be looked into by Appellate Authority as Appellate Authority is also an Authority on facts - HELD THAT - This Course is being adopted by this Court based on the submissions made to the effect that this matter turns heavily on facts and supporting documents. Impugned orders are not interfered with and all questions on merits are left open. Impugned orders are not interfered with on the ground of availability of effective and efficacious alternate remedy - Petition disposed off.

Summary

Issues:
Challenging two assessment orders related to CST and TIN for the year 2016-17. Grounds include rate of tax for UPS, revision of Form WW, and lack of opportunity for personal hearing.

Analysis:
The writ petitioner, engaged in the sale of Uninterrupted Power Supply (UPS) and batteries, challenged two assessment orders primarily on three grounds. Firstly, disputing the rate of tax for UPS, the petitioner argued for a revision of Form WW, an Auditor's Certificate, which was not permitted by the respondent. Secondly, the petitioner claimed a lack of opportunity for a personal hearing, alleging a violation of the principles of natural justice (NJP). The Revenue counsel contended that personal hearing was indeed granted, as evidenced in the impugned order.

Regarding the revision of Form WW, the petitioner's corrigendum was not considered by the Authority despite the submission. The impugned order stated that without supporting documents, Form WW could not be amended, leading to the disallowance of an exemption claimed on turnover. The petitioner highlighted an error in the disallowed exemption amount on export sales, which was refuted by the Revenue counsel due to lack of supporting documents.

The issue of the rate of tax for UPS was also contentious, with the original rejection based on the product not being classified as UPS. The Court suggested that the Appellate Authority should review the corrigendum to Form WW if supported by relevant documents. Notably, the Court emphasized that all questions on merits were left open, redirecting the petitioner to the alternate remedy of appeal to the Appellate Deputy Commissioner (CT), Chennai (South).

In considering the rule of alternate remedy, the Court cited precedents indicating that while alternate remedy is generally preferred, exceptions exist for lack of jurisdiction, NJP violation, or an illusory remedy. In this case, the Court found no grounds falling under the exceptions, affirming the importance of exhausting statutory remedies before seeking judicial intervention. The final order maintained the impugned orders, leaving all merits open for the Appellate Authority's review, particularly focusing on the corrigendum to Form WW with the submission of supporting documents. The Court also allowed for the application of Section 14 of the Limitation Act in case of any delay in filing the appeal.