2019 (7) TMI 475 - HC - VAT and Sales Tax

Maintainability of petition - alternative statutory remedy - it is the specific submission of learned State Counsel that writ petitioner has to necessarily avail the further alternate remedy by filing a regular statutory appeal to TNSTAT inter alia under Section 58 of TNVAT Act - HELD THAT - It was always open to writ petitioner to accelerate the Tax Case Revision pending before Hon ble Division Bench of this Court and if a finding is rendered the same will bind the Tribunal i.e. TNSTAT. Suffice to say that this cannot be a ground to bypass the alternate remedy. This Court considers it appropriate to dismiss the instant writ petition assailing the impugned order albeit without expressing any opinion or view on the merits of the matter. All questions are left open to be decided by TNSTAT if the writ petitioner chooses to file a regular statutory appeal to the Tribunal. Petition dismissed.

Issues:
Challenging an order under the Tamil Nadu Value Added Tax Act, 2006 before the High Court.

Analysis:

1. Grounds of Challenge:
The writ petitioner challenged the impugned order on various grounds, including the dismissal of an appeal by the Tamil Nadu Sales Tax Appellate Tribunal (TNSTAT) on a similar issue for a different assessment year, the requirement to pay balance tax for filing a statutory appeal, failure to consider a relevant case law, and citing a Supreme Court judgment regarding interference in orders despite alternate remedies.

2. State Counsel's Submission:
The State Counsel argued that the writ petitioner had already opted for a statutory appeal, making it inappropriate to seek relief through a writ petition under Article 226 of the Constitution when an alternate remedy of appeal to TNSTAT was available under Section 58 of the TNVAT Act.

3. Court's Consideration:
The Court carefully analyzed the submissions and held that the dismissal of a previous appeal by TNSTAT on a different issue did not justify bypassing the alternate remedy available. The Court emphasized that compliance with conditions for filing a statutory appeal should not be a ground for avoiding the alternate remedy. The Court also noted that the consideration of a case law by the Appellate Authority should be raised in a regular statutory appeal for proper examination. Additionally, the Court distinguished the Supreme Court judgment cited by the writ petitioner, emphasizing the need for a case-specific analysis.

4. Legal Precedents:
The Court referred to the Satyawati Tandon and K.C. Mathew cases by the Supreme Court, highlighting the strict application of the rule of alternate remedy in fiscal law matters. The Court underscored the importance of exhausting statutory remedies before seeking relief under Article 226 of the Constitution.

5. Decision:
Based on the above analysis, the Court dismissed the writ petition without expressing any opinion on the merits, leaving all questions to be decided by TNSTAT if the writ petitioner opts for a regular statutory appeal to the Tribunal. The Court emphasized the application of the Satyawati Tandon principle in the current case, reinforcing the significance of exhausting alternate remedies in tax-related matters.

6. Conclusion:
Ultimately, the Court's decision underscores the importance of following the prescribed statutory procedures and exhausting alternate remedies before seeking judicial intervention, especially in matters concerning tax laws. The judgment serves as a reminder of the strict application of the rule of alternate remedy in fiscal law cases, as reiterated by the Supreme Court in relevant legal precedents.

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