2019 (7) TMI 551 - HC - VAT and Sales Tax

Maintainability of appeal - alternative remedy - revision of assessment - Best Judgement assessment - HELD THAT - In the instant case, there is no disputation or disagreement that there is alternate remedy and it is nobody's case that it is not efficacious or ineffective. In other words, it is nobody's case that alternate remedy is ineffectual or not efficacious. Therefore, this Court is of the considered view that this is a fit case to relegate the writ petitioner to alternate remedy. This Court has also reminded itself that this is the second round of litigation at the original authority stage itself. The appellate authority under Section 51 of TNVAT Act is also an authority which can deal with facts and therefore, all questions that are raised by writ petitioner in the instant cases are left open for writ petitioner to be raised before the appellate Authority and the Appellate Authority can examine the matter on facts and on the merits of the grounds raised therein. To be noted, this is in the light of the language in which the appeal provision i.e., Section 51 of TNVAT Act is couched. Time frame for filing appeal - HELD THAT - If there is any delay, it is open to the writ petitioner to seek condonation of delay as well as exclusion of time spent in the instant writ petition by relying on Section Section 14 of Limitation Act. If the writ petitioner makes such pleas/prayers for condonation of delay and/or exclusion of time spent in the instant writ petition by placing reliance on Section 14 of Limitation Act, such pleas/prayers of writ petitioner shall be dealt with by the Appellate Authority on their own merits. Petition dismissed.

Summary

Issues:
1. Validity of the revised assessment order under TNVAT Act
2. Grant of personal hearing during assessment proceedings
3. Availability of alternate remedy under Section 51 of TNVAT Act

Analysis:

Issue 1: Validity of the revised assessment order under TNVAT Act
The petitioner challenged the revised assessment order under TNVAT Act on grounds that the respondent failed to consider the amendments to the Act and that personal hearing was not granted. The court noted that the respondent had the power to seek production of documents under Section 81 of TNVAT Act, and the petitioner's argument did not warrant interference in the exercise of writ jurisdiction. The court found that the petitioner's contention regarding personal hearing was unfounded as the impugned order clearly stated that personal hearing was offered but not utilized by the petitioner. The court held that the petitioner had an alternate remedy by way of an appeal to the Deputy Commissioner under Section 51 of TNVAT Act, emphasizing the importance of exhausting statutory remedies in tax matters.

Issue 2: Grant of personal hearing during assessment proceedings
The court examined the impugned order and confirmed that personal hearing had been granted to the petitioner, as stated in the order itself. The court rejected the petitioner's argument that personal hearing was not provided, highlighting that the petitioner did not avail the opportunity for production of original records despite being offered the chance. The court emphasized the importance of utilizing the opportunities granted during assessment proceedings and upheld the validity of the assessment process in this regard.

Issue 3: Availability of alternate remedy under Section 51 of TNVAT Act
The court reiterated the principle that the availability of an alternate remedy, in this case, an appeal to the Deputy Commissioner under Section 51 of TNVAT Act, is crucial in tax matters. Citing previous Supreme Court judgments, the court emphasized the need to exhaust statutory remedies before seeking recourse through writ jurisdiction. The court held that the petitioner had an efficacious alternate remedy available and directed the petitioner to pursue the appeal process, preserving the rights of the petitioner to raise all relevant issues before the Appellate Authority.

In conclusion, the court dismissed the writ petitions while underscoring the significance of exhausting alternate remedies in tax matters and preserving the petitioner's rights to appeal under Section 51 of TNVAT Act. The court also directed the return of the original impugned orders to enable the petitioner to pursue the statutory appeal process effectively.