2021 (7) TMI 642 - HC - VAT and Sales Tax

Maintainability of petition - availability of alternative remedy of appeal - Validity of Original Assessment Order - appealable order or not - Violation of principles of natural justice - no opportunity of hearing was provided to the writ petitioner - HELD THAT - Admittedly, the Original Assessment Order is an appealable order under the provisions of TNVAT Act, more specifically, Section 51. Section 51 contemplates appeal to the Appellate Commissioner, Section 58 provides appeal to the Appellate Tribunal and Section 59 and 60 provides appeal and revision to the High Court, respectfully as the case may be - the Statutory remedy contemplated are to be exhausted. High Court cannot adjudicate the disputed issues with reference to the documents or evidences as the Appellate Authorities are the Final Fact Finding Authorities. Thus, the petitioner has to exhaust the remedy which is efficacious. Opportunity of hearing - HELD THAT - In view of the fact that the petitioner had not availed all the opportunities provided by the respondents, the respondents were framed the issues and passed orders. Therefore, the mere contention raised in this regard is contrary to the findings made in the impugned order. However, writ petitioner is of an opinion that further more opportunity is to be provided. He is at liberty to prefer an appeal in a prescribed format and by complying with the provisions of the statutes. However, the High Court adjudicate the issues on merits which requires scrutinization of documents and evidences. The power of judicial review of the High Court under Article 226 of the Constitution of India is to scrutinize the processes through which a decision is taken by the competent authority by following the procedures as contemplated, but not the decision itself - the finding of such appellate forums would be a valuable assistance for the purpose of exercise of judicial review by the High Court under Article 226 of the Constitution of India. The High Court cannot conduct a roving enquiry with reference to the facts and circumstances based on the documents and evidences. Based on the mere affidavits filed by the litigants, the disputed facts cannot be concluded. The practise of filing the Writ Petition without exhausting the statutory remedies are in ascending mode and such Writ Petitions are filed with a view to avoid pre-deposits to be made in statutory appeals and on the ground that the appellate remedies are time consuming - the petitioner is at liberty to approach the Appellate Authority for the purpose of redressing his grievances in the manner known to law - Petition disposed off.

Summary

Issues:
1. Challenge to the Original Assessment Order dated 29.06.2015 under Section 22(4) of the Tamil Nadu Value Added Tax Act.
2. Violation of principles of natural justice and lack of opportunity for the petitioner to defend the case.
3. Applicability and exhaustion of statutory remedies under the TNVAT Act, including appeal procedures.
4. Judicial review under Article 226 of the Constitution of India and the role of appellate authorities in fact-finding.
5. Preferability of exhausting appellate remedies before resorting to writ proceedings.
6. Importance of appellate forums in providing valuable assistance for judicial review by the High Court.

Analysis:
1. The writ petitions challenge the Original Assessment Order passed under the Tamil Nadu Value Added Tax Act. The petitioner argues that they were not provided with a fair opportunity to defend their case, including the lack of a chance to cross-examine witnesses. The petitioner contends that the order should be set aside due to these violations of the Act.

2. The Assessment Order is appealable under the TNVAT Act, with provisions for appeals to different authorities. The High Court emphasizes that statutory remedies must be exhausted before seeking judicial review. The Appellate Authorities are considered the final fact-finding bodies, and the petitioner must follow the prescribed appeal procedures.

3. The Assessment Order indicates that the petitioner was given multiple opportunities to be heard and submit objections, but the petitioner did not fully cooperate. The High Court notes that the petitioner failed to avail all opportunities provided by the authorities, leading to the framing of issues and passing of orders.

4. The High Court underscores the importance of exhausting appellate remedies before resorting to writ proceedings. While exceptions exist for immediate relief in cases of gross injustice, the general rule is to follow the appellate process. The appellate authorities are crucial for fact-finding, and their findings assist the High Court in judicial review.

5. Judicial review under Article 226 of the Constitution is limited to scrutinizing the decision-making process, not the decision itself. The High Court warns against routinely bypassing appellate remedies, as it undermines the institutional hierarchy and the expertise of appellate forums. The significance of fact-finding by these authorities is highlighted for ensuring complete justice.

6. Delays and attempts to avoid statutory remedies through premature writ petitions are discouraged. The petitioner is advised to approach the Appellate Authority to address grievances in accordance with the law. The High Court disposes of the writ petitions without costs, emphasizing the importance of following the prescribed legal procedures and exhausting statutory remedies before seeking judicial review.