2020 (10) TMI 206 - HC - VAT and Sales Tax

Maintainability of petition - availability of alternative remedy under the Tamil Nadu Value Added Tax Act - interpretation of Section 63A and furnishing of Form 'WW' by the Chartered Accountant - HELD THAT - The present writ appeals do not have any merit and deserve to be dismissed. The well settled legal position about exercising writ jurisdiction against appealable assessment orders has been settled by a catena of decisions by the Hon'ble Supreme Court and various High Courts. While alternative remedy is not a bar to the jurisdiction of the High Court under Article 226 of the Constitution of India, it is certainly a rule of discretion given to the Writ Courts and therefore if the learned Single Judge has not entertained the writ petitions even on the grounds, interalia, raised before the Writ Court viz., the breach of principles of natural justice, we are of the considered opinion that the said order does not require any interference. All these grounds or grievances including breach of principles of natural justice can obviously be raised before the appellate authority. Interpretation of Section 63A - furnishing of Form 'WW' by the Chartered Accountant - HELD THAT - We do not want to express any opinion on the same as it may prejudice the case of the Assessee as well as the Revenue before the appellate authorities below. Nor on the question of rate of tax applicable on UPS, we intend to express any opinion, because it is a question of fact and deserves to be established by the Assessee and admittedly on 02.03.2020 the Assessee has filed a Rectification Application before the authority concerned, who is now seized of the matter. Therefore, expressing any opinion on the merits of the contentions raised by the learned counsel for the Assessee will unnecessarily prejudice the case of the parties before the authorities below. Impugned order need not be interfered with - petition dismissed.

Summary

Issues:
1. Availability of alternative remedy under the Tamil Nadu Value Added Tax Act.
2. Interpretation of Section 63A regarding Form 'WW' amendment.
3. Rate of tax applicable on UPS.
4. Breach of principles of natural justice.

Analysis:
1. The appellant challenged the order dismissing writ petitions against assessment orders, citing availability of alternative remedy under the Tamil Nadu Value Added Tax Act. The learned Single Judge justified the decision, emphasizing the need for supporting documents for amending Form 'WW'. The court directed the Appellate Authority to consider the corrigendum to Form 'WW' if supported by documents, leaving all questions on merits open and allowing the appellant to file an appeal.

2. The appellant argued that assessment orders can be challenged before the Writ Court for breaches of natural justice. Section 63A allows Form 'WW' amendment by a Chartered Accountant, and rectification applications were filed. The court held that the Writ Court's discretion to entertain petitions against appealable orders is settled law, and the matter should be raised before the Appellate Authority.

3. The issue of the rate of tax applicable on UPS was raised, with the court emphasizing the need for proper establishment of facts before the authorities. The court declined to express an opinion on Section 63A interpretation and the tax rate issue, advising the Assessee to pursue remedies before the appellate authorities.

4. Regarding the breach of principles of natural justice, the court maintained that such grievances can be raised before the appellate authority, and declined to interfere with the order, leaving it open for the Assessee to appeal in accordance with the law. The court stressed the need for expeditious decision on the Rectification Application filed by the Assessee.

In conclusion, the court dismissed the intra-court appeals, allowing the Assessee to pursue remedies through the proper appellate channels. The judgment highlighted the importance of following legal procedures and exhausting alternative remedies before seeking relief from the court.