2019 (7) TMI 719 - HC - VAT and Sales Tax

Maintainability of petition - availability of alternative remedy - It is the submission of learned counsel for writ petitioner that if there is a mismatch, the Assessing Officer should have proceeded against the sellers from whom the writ petitioner has purchased and should not have mulcted the writ petitioner with tax - HELD THAT - This Court is of the considered view that these are all grounds which have to be raised in a statutory appeal. There is no disputation or disagreement before this Court that a statutory appeal is available to the writ petitioner under Section 51 of TNVAT Act. This Court is of the considered view that in the instant case, considering the facts and circumstances of this case, this Court is unable to persuade itself to believe that there is violation of M/S. JKM GRAPHICS SOLUTIONS PRIVATE LIMITED VERSUS THE COMMERCIAL TAX OFFICER 2017 (3) TMI 536 - MADRAS HIGH COURT principle. It comes out clearly that alternate remedy is not an absolute rule. It is a rule of discretion. This Court is unable to persuade itself to believe (in the light of narrative thus far) that there is any violation to JKM Graphics Solution principle as alleged. This Court deems it appropriate to relegate the writ petitioner to the alternate remedy of an appeal under Section 51 of TNVAT Act. As this Court is relegating the writ petitioner to alternate remedy, all questions raised including the questions raised in the instant writ petition are left open to be raised before the Appellate Authority. Reserving the rights of the writ petitioner with regard to appellate remedy, this writ petition is dismissed.

Summary

Issues:
1. Discrepancy in numerical values in invoices under TNVAT Act
2. Application of JKM Graphics Solution principle
3. Availability of statutory appeal under Section 51 of TNVAT Act
4. Consideration of alternate remedy in fiscal laws

Discrepancy in Numerical Values in Invoices:
The case involved a writ petition under the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) concerning a dealer facing a tax assessment issue. The dealer's business premises were inspected, leading to a notice regarding defects in the accounts. The Assessing Officer proposed a tax amount, which was later reduced after showing the defective aspects of the TNVAT site to the dealer. The discrepancy arose from the mismatch in numerical values between the dealer's invoices and the sellers' documents. The court noted that the Assessing Officer had applied his mind during the assessment process, leading to the adjustment in the tax amount based on the highlighted defects.

Application of JKM Graphics Solution Principle:
The writ petitioner argued that the mismatch in numerical values was due to repeated supplies shown more than once, suggesting that the Assessing Officer should have pursued the sellers instead of imposing tax on the petitioner. Reference was made to the JKM Graphics Solution principle established in a previous case. However, the court held that factual issues like these should be addressed in a statutory appeal rather than in a writ jurisdiction. The court emphasized that the statutory appeal under Section 51 of the TNVAT Act was available for the petitioner to challenge such matters.

Availability of Statutory Appeal:
The judgment highlighted that the statutory appeal provided a proper forum to address issues related to the assessment process and discrepancies in tax calculations. It was emphasized that the grounds raised by the petitioner, including those in the writ petition, could be presented before the Appellate Authority. The court dismissed the notion of a violation of the JKM Graphics Solution principle and directed the petitioner to pursue the appeal process for a comprehensive review of the assessment.

Consideration of Alternate Remedy in Fiscal Laws:
In discussing the concept of alternate remedies in fiscal laws, the court referred to established legal principles emphasizing the importance of exhausting statutory remedies before seeking relief through writ jurisdiction. Citing previous judgments, the court underscored the need for caution and adherence to statutory procedures, especially in matters involving public dues and financial institutions. Consequently, the court reasserted the importance of availing the statutory appeal under the TNVAT Act as the appropriate course of action, leaving all questions raised in the writ petition open for consideration by the Appellate Authority.

In conclusion, the judgment addressed the issues of numerical discrepancies in tax assessments under the TNVAT Act, the application of legal principles like the JKM Graphics Solution, the availability of statutory appeal, and the significance of following established procedures in fiscal laws. The court directed the petitioner to pursue the statutory appeal for a thorough review of the assessment, highlighting the importance of exhausting alternate remedies before seeking relief through writ jurisdiction.