2013 (2) TMI 539 - HC - VAT and Sales Tax

Writ of Mandamus - forbearing the respondents, their men, officers & subordinates from insisting upon the production of transit pass for moving the goods manufactured by the petitioner viz., Polyol, which is a chemical in liquid form - Held that - Whether Polyol sold interstate will be entitled to be detained as goods falling under the Sixth Schedule requiring a transit pass or goods falling under the First Schedule, Part-B, Serial No.1 is a matter to be decided by competent authority, namely, by the first respondent Commissioner of Commercial Taxes and give proper direction to the authorities as to how they should proceed in the matter. The court at this stage is not inclined to go into the factual issue except to direct the first respondent Commissioner to consider the said plea made by the petitioner and pass appropriate order or direction as may be required either accepting the petitioner s version or rejecting the same. Petitioner is at liberty to challenge any such order that may be passed by the first respondent if still aggrieved.

Summary

Issues:
1. Jurisdiction of check-post authority to reclassify goods.
2. Requirement of transit pass for goods sold interstate.
3. Competency of the Commissioner to decide classification of goods.
4. Validity of mandamus in absence of competent authority's decision.

Analysis:
1. The petitioner, a chemical manufacturing company, produces goods like Polyol falling under the TNVAT Act, 2006. The company faced detention of goods by check post authorities due to misclassification as plastic articles, necessitating transit pass. The petitioner seeks a writ to prevent such insistence on transit pass for moving its goods.

2. The senior counsel for the petitioner argues that the assessing authority has recognized Polyol as a chemical under the First Schedule, Part-B, Serial No.1. Hence, the check-post authority lacks jurisdiction to reclassify the goods as plastic articles requiring a transit pass. The crucial question is whether Polyol sold interstate falls under the Sixth Schedule or the First Schedule, Part-B, Serial No.1.

3. The court refrains from delving into the factual issue and directs the Commissioner to consider the petitioner's plea. The Commissioner is tasked with deciding the classification of Polyol and issuing appropriate directions to the authorities. The court emphasizes that no mandamus can be issued without notifying the competent authority, and any decision by the court does not bind the authorities.

4. The court concludes by disposing of the writ petition, urging the Commissioner to resolve the matter within four weeks. It highlights the need for the Commissioner to assess the claim, provide a fair hearing to the petitioner, and act in accordance with the law. The judgment emphasizes that a decision by the competent authority will determine the course of action, and the petitioner retains the right to challenge any subsequent orders if dissatisfied.