2021 (9) TMI 1226 - HC - VAT and Sales Tax

Benefit of Concessional rate of duty denied - inclusion of freight in the taxable turnover, challenged - levy of higher rate of tax - denial on the ground of want of C-Form - HELD THAT - The Tamil Nadu Sales Tax Appellate Tribunal is a specialized institution created to deal with the Sales Tax Appeals, under the provisions of the Act. Thus, the Tribunal is an appropriate authority for redressal of the grievances, if any exist, through the writ petitioner. Contrarily, certain disputed facts which deserves an adjudication with reference to the documents and evidences, cannot be done by the High Court, under Article 226 of the Constitution of India. The power of judicial review under Article 226 of the Constitution of India is to be exercised to scrutinise the processes through which a decision is taken by the competent authority in consonance with the provisions of the Act, but not the decision itself. Thus, the petitioner is bound to prefer an appeal before the Tamil Nadu Sales Tax Appellate Tribunal, under the provisions of the Act, in a prescribed format, by complying with the procedures contemplated - the petitioner is at liberty to prefer an appeal before the Tamil Nadu Sale Tax Appellate Tribunal and in the event of preferring any such appeal by the petitioner, the Tribunal may condone the delay, taking note the period of pendency of the Writ Petition before this Court, and entertain the appeal and decide the same on merits and in accordance with law, by affording opportunity to the writ petitioner. Petition disposed off.

Summary

Issues:
Challenge to order passed by 1st respondent in A.P.No.26 of 2013 dated 29.11.2013 regarding assessment under TNVAT Act and CST Act for Assessment Year 2009-10.

Analysis:
The petitioner, a registered dealer under TNVAT Act and CST Act, engaged in the manufacture and sale of fragile products, challenged the assessment for the Assessment Year 2009-10, where CST was paid at a concessional rate under Form C declaration. The petitioner appealed against the inclusion of freight in taxable turnover and levy of higher tax rate for lack of C-Form.

The 1st respondent, after hearing the petitioner's submissions and evidence, passed an order disregarding legal grounds and factual aspects raised by the petitioner. The order was subject to appeal before the Tamil Nadu Sales Tax Appellate Tribunal, which the petitioner did not pursue.

The High Court emphasized the importance of the appellate remedy before the Tribunal for redressal of grievances and adjudication of disputed facts. The power of judicial review under Article 226 of the Constitution of India is to scrutinize the decision-making process, not the decision itself. The petitioner was directed to prefer an appeal before the Tribunal, which could condone any delay and decide the appeal on merits and in accordance with the law.

In conclusion, the Writ Petition was disposed of with the direction for the petitioner to appeal before the Tamil Nadu Sales Tax Appellate Tribunal. The High Court highlighted the significance of the appellate remedy and the need for adherence to prescribed procedures, ensuring the Tribunal's findings would assist in the judicial review process under Article 226 of the Constitution of India.