2021 (1) TMI 64 - HC - VAT and Sales Tax

Revision of assessment order - time limitation - challenge on the ground that the revision of assessment proceedings has been initiated by the respondent beyond the period of five years from the date of original assessment and therefore, under Section 16(1)(a) of the Tamil Nadu General Sales Tax Act, 1959 r/w Section 9 of Central Sales Tax Act, 1956 - HELD THAT - As seen from the impugned revision of assessment order, the second respondent himself has admitted that the original assessment order was passed against the petitioner as early as on 12.06.2009 - Admittedly, the revision of assessment notice was also issued on the petitioner by the respondent only on 09.04.2018 as reflected in Reference No.2 in the impugned revision of assessment order ie., beyond the period of five years from the date of the original assessment order. As seen from Section 16(1)(a) of the Tamil Nadu General Sales Tax Act, 1959, it is clear that any revision of assessment can be made only within a period of five years from the date of original assessment order - In the case on hand, the revision of assessment proceedings was initiated against the petitioner on 09.04.2018 as seen from the revision of assessment notice issued by the respondent, which is beyond the period of five years from the date of original assessment. Therefore, Section 16(1)(a) of the Tamil Nadu General Sales Tax Act, 1959, gets attracted and the revision of assessment proceedings initiated by the respondent against the petitioner is barred by the Law of Limitation. The decision of the Honourable Supreme Court of India in the case of STATE OF PUNJAB VERSUS BHATINDA DISTRICT CO-OP. MILK P. UNION LTD. 2007 (10) TMI 300 - SUPREME COURT as well as the decision of the Honourable Division Bench of this Court in the case of MUA. ARMUGAPERUMAL AND SONS VERSUS ADDITIONAL COMMERCIAL TAX OFFICER (FAC), SRIVILLIPUTTUR 2008 (4) TMI 682 - MADRAS HIGH COURT relied upon by the learned counsel for the petitioner for the proposition that the writ petition is maintainable when the order lacks jurisdiction or it is barred by the limitation, is squarely applicable to the facts of the instant case. Admittedly, the revision of assessment proceedings initiated by the respondent against the petitioner is barred by the Law of Limitation as per Section 16(1)(a) of the Tamil Nadu General Sales Tax Act, 1959 - Therefore, the contention of the respondent that the petitioner will have to file a statutory appeal and the writ petition is not maintainable is rejected by this Court. The impugned revision of assessment order passed by the respondent for the assessment year 2006-2007, is hereby quashed - the writ petition is allowed.

Summary

Issues:
Challenge to impugned revision of assessment order based on limitation under Section 16(1)(a) of Tamilnadu General Sales Tax Act, 1959 r/w Section 9 of Central Sales Tax Act, 1956.

Analysis:
1. The petitioner challenged the revision of assessment order dated 21.02.2019, arguing that the respondent initiated the proceedings beyond the five-year period from the original assessment, invoking Section 16(1)(a) of the Tamilnadu General Sales Tax Act, 1959 and Section 9 of the Central Sales Tax Act, 1956.

2. The respondent contended that the petitioner claimed exemption through an 'F' Form for the whole year, which was contrary to the requirement of filing the form monthly as per Rule 12(5) of the Central Sales Tax Rules 1957. The respondent also argued that the petitioner should have filed a statutory appeal instead of resorting to a writ petition.

3. The Court examined the impugned revision of assessment order under Section 16(1)(a) of the Tamilnadu General Sales Tax Act, 1959 and Section 9(2) of the Central Sales Tax Act, 1956. It noted that the original assessment was done on 12.06.2009, and the revision notice was issued on 09.04.2018, exceeding the five-year limit from the original assessment date.

4. Referring to Section 16(1)(a) of the Tamilnadu General Sales Tax Act, 1959, the Court emphasized that any revision of assessment must occur within five years from the date of the original assessment order. Since the revision notice was issued beyond this period, the Court held that the revision proceedings were time-barred.

5. Citing precedents like the State of Punjab v. Bhatina District Cooperative Milk P.Union Ltd. and M.U.A.Arumugaperumal and Sons v. Additional Commercial Tax Officer, the Court affirmed that a writ petition is maintainable when an order lacks jurisdiction or is barred by limitation. In this case, the Court concluded that the revision proceedings were indeed barred by the Law of Limitation.

6. Consequently, the Court quashed the impugned revision of assessment order dated 21.02.2019 for the assessment year 2006-2007, allowing the writ petition and closing the connected Miscellaneous Petition without costs.