2009 (3) TMI 490 - HC - VAT and Sales Tax

Appeal against order of rectification of mistake- Whether the provisions of the Tamil Nadu General Sales Tax Act, 1959 relating to the appeal and revision shall apply to an order or rectification made under sub-section (4) of Section 55 of the said Act? Held that- under section 55 of Tamil Nadu General sales tax Act, 1959, provisions elating to appeal and revision apply only when an order of rectification is made and not when authority concerned refuse to pass an order of rectification.

Summary

Issues:
1. Applicability of provisions of the Tamil Nadu General Sales Tax Act, 1959 to an order or rectification made under sub-section (4) of Section 55 of the Act.

Analysis:

The case involved a company engaged in supplying, installing, testing, and commissioning diesel generators, primarily dealing with government departments and Bharat Sanchar Nigam Limited. The company was assessed under the Tamil Nadu General Sales Tax Act, 1959 by the Commercial Tax Officer. Displeased with the assessment order for the year 2000-01, the company filed an appeal which was dismissed due to the existence of an alternative remedy. Subsequently, the company filed a rectification petition under Section 55 of the Act, citing errors apparent on the face of the record. The rectification was partially accepted by the assessing authority, leading to further legal proceedings.

The crux of the matter revolved around the rectification petition filed by the company and the subsequent legal challenges. The assessing authority's rectification order was questioned by the company, contending that deductions towards labor charges were not appropriately granted. The High Court deliberated on the interpretation of Section 55 of the Act, which empowers authorities to rectify errors within five years from the date of the order. The court emphasized that provisions for appeal and revision under Section 55(4) would apply only to orders rectifying errors, not to orders refusing rectification petitions.

In light of previous judicial decisions, the High Court reiterated that the statutory provisions regarding appeal and revision are applicable when an order of rectification is made, not when a rectification application is dismissed. Citing precedents, the court clarified that no appeal lies against an authority refusing to exercise powers of revision. Consequently, the court set aside the impugned order and remitted the matter back for further consideration on its merits, allowing the writ appeal without costs.

In conclusion, the judgment addressed the nuanced application of the Tamil Nadu General Sales Tax Act, 1959 concerning rectification orders under Section 55 and the corresponding provisions for appeal and revision. The court's interpretation of the statutory framework, supported by legal precedents, underscored the importance of distinguishing between orders rectifying errors and those dismissing rectification applications. The decision provided clarity on the scope of appellate recourse in such matters, ensuring procedural adherence and legal consistency in tax assessments under the Act.