2020 (3) TMI 732 - HC - VAT and Sales Tax

Maintainability of appeal - Section 58 of the Tamil Nadu Value Added Tax Act 2006 - principles of natural justice - HELD THAT - There is no error in the order passed by the learned Single Judge and even the ground of breach of principles of natural justice, if at all can be established by the Assessee, the Assessee can very well file an appeal under Section 58 of the Act before the Sales Tax Appellate Tribunal besides raising the grounds on the merits of the case. Therefore, it does not entitle the Assessee / Appellant to resort to writ jurisdiction invariably in all circumstances for the alleged breach of principles of natural justice. In the present case the appellant could avail the effective alternative remedy - the Writ Appeal is disposed of by relegating the matter back to the first appellate authority viz., the The Appellate Deputy Commissioner (CT), Chennai (East), Chennai.

Summary

Issues:
1. Availability of alternative remedy under Section 58 of the Tamil Nadu Value Added Tax Act 2006.
2. Breach of principles of natural justice in passing the impugned order.

Analysis:

Issue 1: Availability of alternative remedy under Section 58 of the Tamil Nadu Value Added Tax Act 2006
The writ appeal was filed against the order of the learned Single Judge dismissing the writ petition on the grounds of the availability of an alternative remedy under Section 58 of the Act. The Single Judge emphasized that the Assessee had the option to file a regular appeal against the order passed by the first appellate authority. The court highlighted that the existence of an alternative remedy should not be bypassed, even if certain conditions needed to be fulfilled for filing a statutory appeal. The judgment reiterated that grounds like citing a case law before the appellate authority should be raised in a regular statutory appeal for proper examination. Ultimately, the court accepted the State Counsel's submission that the case warranted the Assessee to pursue the alternate remedy of appealing to the Tribunal.

Issue 2: Breach of principles of natural justice in passing the impugned order
The counsel for the Assessee contended that there was a breach of principles of natural justice in passing the impugned order. However, after hearing both parties, the court found no error in the Single Judge's order. The court emphasized that even if a breach of natural justice could be established, the Assessee could address it by filing an appeal under Section 58 of the Act before the Sales Tax Appellate Tribunal, along with raising other grounds on the merits of the case. The judgment clarified that resorting to writ jurisdiction solely for alleged breaches of natural justice was not warranted in all circumstances. Consequently, the court disposed of the Writ Appeal by directing the matter back to the first appellate authority, allowing the Assessee to file an appeal within a specified timeframe without objections on the ground of limitation, subject to meeting all other usual conditions for appeal.

In conclusion, the judgment upheld the importance of exhausting alternative remedies available under the law before seeking recourse through writ jurisdiction. It emphasized the need for compliance with statutory procedures and conditions for filing appeals, while also highlighting the significance of addressing issues like breach of natural justice through the appropriate appellate channels.