2019 (8) TMI 1014 - HC - VAT and Sales Tax

Principles of natural justice - reasonable opportunity to the writ petitioner to show cause against the impugned order - Proviso to Section 27(1) of TNVAT Act - effective and efficacious alternate remedy by way of an appeal to the 'jurisdictional Appellate Deputy Commissioner' - Section 51 of TNVAT Act - alternate remedy - HELD THAT - With regard to the alternate remedy aspect, there can be no disputation that the rule of alternate remedy and exercise of writ jurisdiction on the teeth of alternate remedy is clearly a self imposed restraint by Courts exercising writ jurisdiction. In other words, it is not a rule of compulsion and it is only a rule of discretion. Though it is a rule of discretion, with regard to fiscal law, the rigour is more. This Court also notices that this writ petition has been presented in this Court on 25.07.2019. Therefore, when writ petitioner goes before the said Appellate Authority (if the writ petitioner chooses to do so,) the period spent in the instant writ petition i.e., period from 25.07.2019 to the date on which the copy of the order is made available shall stand excluded. This is done as a scenario may emerge where the writ petitioner may not even have to seek condation of delay. However, this Court based on the principles adumbrated in Section 14 of Limitation Act excludes the period from 25.07.2019 to the date on which copy of instant order is made available to the writ petitioner for the purpose of enabling the writ petitioner to avail alternate remedy by way of statutory appeal before said Appellate Authority. Petition dismissed.

Summary

Issues:
1. Validity of revised assessment order under Tamil Nadu Value Added Tax Act, 2006.
2. Adequacy of opportunity provided to the writ petitioner to show cause against the impugned order.
3. Adequacy of consideration of objections and responses in the impugned order.
4. Availability and applicability of alternate remedy of appeal under Section 51 of TNVAT Act.
5. Application of the rule of alternate remedy in fiscal law cases.
6. Consideration of delay in filing statutory appeal and exclusion of time spent in pursuing writ petition.

Detailed Analysis:
1. The judgment concerns a revised assessment order passed under the Tamil Nadu Value Added Tax Act, 2006, challenged by the writ petitioner. The impugned order was issued by the respondent after providing ample opportunities for the writ petitioner to show cause, as mandated by the proviso to Section 27(1) of the TNVAT Act. The court noted that multiple notices and responses were exchanged between the parties, indicating that reasonable opportunities were given to the petitioner.

2. The writ petitioner contended that the objections and responses were not adequately addressed in the impugned order. The petitioner's counsel argued that the objections were summarized in a paragraph without a detailed point-by-point consideration. The court acknowledged this argument but emphasized that the objections were indeed considered, albeit in a concise manner. The court referred to a specific case law cited by the petitioner to support the requirement for the respondent to provide valid reasons for accepting or rejecting objections.

3. The respondent highlighted the availability of an alternate remedy through an appeal to the Appellate Deputy Commissioner under Section 51 of the TNVAT Act. The court recognized the principle of the rule of alternate remedy, especially in fiscal law cases, citing precedents that emphasized the importance of exhausting statutory remedies before seeking judicial intervention. The court referred to landmark judgments that underscored the strict application of the rule of alternate remedy in tax-related matters.

4. Considering the timeline for filing the statutory appeal, the court allowed for the exclusion of the period spent pursuing the writ petition to facilitate the petitioner's compliance with the statutory appeal process. The court clarified that any application for condonation of delay would be subject to the discretion of the Appellate Authority. The judgment ultimately dismissed the writ petition while preserving the petitioner's rights to pursue the statutory appeal, with all issues left open for consideration before the Appellate Authority.

5. In conclusion, the judgment upholds the validity of the revised assessment order, acknowledges the opportunities provided to the writ petitioner, emphasizes the rule of alternate remedy in fiscal law cases, and provides guidance on the timeline and process for pursuing the statutory appeal while excluding the time spent in the writ petition from the calculation of the appeal deadline.