2023 (8) TMI 1095 - HC - VAT and Sales Tax

Legality of Recovery Notices and Garnishee notice sent to the sixth respondent / Indian Oil Corporation Limited - Stay granted not taken note of - violation of principles of natural justice - HELD THAT - It appears that the respondents have issued the Impugned Recovery Notice without properly taking note of the stay that was granted by the Tribunal in the appeals that are pending before it for the Assessment Year 2007-2008 to 2015-2016. The petitioner has also paid the tax for these Assessment Years. As far as the rest of the Assessment Years for 2016-2017 2017-2018, which is covered partly by the Impugned Recovery Notice as mentioned above, some of the demands have been set aside and the cases have been issued back to the Assessing Officer to pass a fresh order. Therefore, there are no justification in the Impugned Recovery Notice to recover the amounts from the sixth respondent/Garnishee. The impugned order stands quashed. The respondents are to await for the final order to be passed by the Tribunal for the assessment year 2007 to 2008 to 2015 to 2016, which is likely to be taken up for hearing on 21.07.2023 - Petition allowed.

Summary

Issues Involved:
The judgment deals with challenges to Impugned Recovery Notices and Garnishee notice under the Tamil Nadu Value Added Tax Act, 2006 for various Assessment Years.

Challenges to Recovery Notices:
The petitioner challenged the Impugned Recovery Notices and Garnishee notice sent to the sixth respondent, Indian Oil Corporation Limited, citing adverse orders under the TN VAT Act, 2006 for Assessment Years 2007-2008 to 2015-2016. The petitioner had paid the disputed tax and secured an interim order for penalties, with the main appeal scheduled for hearing. Proceedings initiated for recovery from Indian Oil Corporation Limited were allowed by remand, and orders for other Assessment Years were reserved. The respondents issued the Recovery Notice without considering the stay granted by the Tribunal for pending appeals, leading to the quashing of the Impugned Recovery Notice.

Final Orders and Directions:
The judgment quashed the impugned order, directing the respondents to await final orders from the Tribunal for Assessment Years 2007-2008 to 2015-2016 and for the rest of the months based on previous orders. The writ petitions were allowed with observations and directions, with no costs incurred. Connected miscellaneous petitions were closed as a consequence of the judgment.