2014 (9) TMI 720 - HC - VAT and Sales Tax

Maintainability of appeal - Alternative remedy - Challenge to revision petition - Held that - In respect of notice issued to the petitioner, they sent reply on 27.03.2014 praying for three weeks time to submit their further reply and prayed for keeping the matter in abeyance and accordingly, it was considered and the petitioner was granted time upto 09.04.2014 and on that date, a representative of the petitioner appeared on 09.04.2014 and submitted a reply on 09.04.2014 and taking into consideration of the same, the impugned order came to be passed. Since the petitioner is having effective alternative remedy in the form of appeal before the above said Authority, this Court is of the view that these writ petitions cannot be entertained and therefore, the writ petitions are dismissed at the admission stage itself. However, this Court taking into consideration of the fact that the petitioner in these writ petitions are diligently prosecuting the writ petitions and that they should be given time to file appeal before the Appellate Authority, the petitioner in these writ petitions are granted time of two weeks from the date of receipt of a copy of this order to file appeals before the Appellate Authority - Decided against assessee.

Summary

Issues:
Challenge to impugned assessment order based on inspection conducted by Enforcement Wing, non-application of mind by respondent, violation of principles of natural justice, opportunity to produce chartered accountant's certificate, alternative remedy of appeal before Appellate Deputy Commissioner of Commercial Taxes-III.

Analysis:
The petitioner challenged the impugned assessment order dated 30.04.2014, which was based on an inspection conducted by the Enforcement Wing. The petitioner raised concerns regarding the issuance of notices for revision of assessment for seven years simultaneously, requiring time to collect details and produce a chartered accountant's certificate to support their defense. Despite submitting replies, the respondent passed the assessment order hastily without granting further time or allowing the petitioner to provide necessary documentation, leading to an alleged violation of principles of natural justice.

The petitioner's counsel argued that the respondent's actions displayed non-application of mind and requested the impugned order be set aside to enable the petitioner to furnish the required certificate from the Chartered Accountant. On the other hand, the Government Advocate representing the respondent pointed out that an appeal lay before the Appellate Deputy Commissioner of Commercial Taxes-III, Chennai-6, within 30 days of receiving the order, where all issues, including jurisdiction concerns, could be raised.

The Court observed that the petitioner had been granted time to reply to the notices and had submitted a detailed response on 09.04.2014. However, the Court noted that the petitioner's plea for further opportunity to respond could not be entertained as an effective alternative remedy through the appeal process existed before the Appellate Deputy Commissioner. Therefore, the Court dismissed the writ petitions at the admission stage, emphasizing the availability of the appeal route for the petitioner to address their grievances.

Despite dismissing the writ petitions, the Court acknowledged the petitioner's diligent pursuit of the case and granted them two weeks from the receipt of the order to file appeals before the Appellate Authority. The Court directed the Appellate Authority to expedite the processing and disposal of the appeals in accordance with the law. No costs were awarded, and the connected miscellaneous petitions were closed as a result of the judgment.