2017 (6) TMI 1404 - HC - VAT / Sales Tax

Challenge to assessment order - grievance of the petitioner is that the Assessing Officer imposed tax liability at the rate of 14.5% when the petitioner is liable to pay only at the rate of 0.5% - HELD THAT - It is not in dispute that before passing the order of assessment, a notice of proposal dated 15.09.2016 was issued to the petitioner and they also filed their objection followed by a personal hearing. After, considering the objection raised by the petitioner, the Assessing Officer passed the impugned order of assessment by fixing the tax liability at the rate of 14.5%. Whether the petitioner is liable to pay 0.5% or 14.5% is the matter involving consideration of factual aspects and therefore, the same has to be considered and decided by the next fact finding authority viz., the first Appellate Authority. Instead of filing such appeal, the petitioner has approached this Court and filed the present writ petition. As the Assessing Officer has followed the principles of natural justice and passed the impugned order, it is for the petitioner to canvass the correctness or otherwise of the said order before the Appellate Authority by filing a regular appeal as provided under the statute. It is not found that the writ petition can be the only remedy available to the petitioner, at this stage - Accordingly, this writ petition is disposed of by granting liberty to the petitioner to file an appeal before the first Appellate Authority within a period of three weeks from the date of receipt of a copy of this order.

Summary

The High Court of Madras disposed of a writ petition challenging a tax assessment order for the assessment year 2015-2016. The petitioner claimed they were liable to pay tax at 0.5% instead of 14.5%. The court ruled that the matter should be decided by the Appellate Authority and granted the petitioner three weeks to file an appeal. No costs were awarded.