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TMI Blog2009 (3) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioner is granted liberty to file a stay petition before the second respondent and in the event of filing any such application within a period of two weeks from the date of receipt of a copy of this order, the same shall be considered by the second respondent on merits and as per law within a period of four weeks thereafter. - W.P. (MD) Nos. 2145, 2146 of 2009 - - - Dated:- 24-3-2009 - SASIDHARAN K.K. , J. ORDER:- K.K. SASIDHARAN J. These two writ petitions are directed against the proceedings of the first respondent in RC. No. 5163246 (2003-04) and (2004-05) respectively, dated July 31, 2008, whereby the petitioner was issued a distraint order for recovery of the tax amount pending disposal of the statutory proceedings initiated under section 16D of the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as, the TNGST Act ). Pleadings The petitioner is a dealer in paper products and is an assessee on the file of the first respondent. With respect to the assessment year 2003-04, they have reported a total and taxable turnover of Rs. 21,30,755 and after enquiry, an assessment order was passed on March 20, 2004. Subsequently, the assessment wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be decided The only question involved in the writ petition is as to whether the Special Committee constituted under section 16D of the TNGST Act was entitled to pass interlocutory orders during the pendency of the proceedings. Scheme of the Act The TNGST Act provided for the constitution of a Special Committee comprising the senior officers of the Government to exercise the powers of revision. Section 16D of the TNGST Act would read thus: 16D. Constitution of Special Committee. (1) The Government shall appoint a Special Committee consisting of, (1) Secretary to Government, Commercial Taxes Department; (2) Commissioner of Commercial Taxes; and (3) Secretary to Government, Finance Department or his nominee. (2) Notwithstanding anything contained in this Act, the Special Committee may, of its own motion or on application, call for and examine the records of the assessing authority in respect of any proceeding or order under sub-section (2) or (3) of section 12 or subsection (1) or (2) of section 16, if such proceeding or order is passed in violation of the provisions of the Act or Rules made thereunder or without following the principles of natural jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven the power to prescribe their own procedure and to take care of the incidental proceedings which are connected with the substantial proceedings. Such powers are absolutely necessary for the effective functioning of the Tribunals. The salient features of a Tribunal and its power of adjudication was considered by the Supreme Court in Associated Cement Companies Ltd. v. P.N. Sharma AIR 1965 SC 1595, wherein it was held thus: 8. In every State there are administrative bodies or authorities which are required to deal with matters within their jurisdiction in an administrative manner and their decisions are described as administrative decisions. In reaching their administrative decisions, administrative bodies can and often do take into consideration questions of policy. It is not unlikely that even in this process of reaching administrative decisions, the administrative bodies or authorities are required to act fairly and objectively and would in many cases have to follow the principles of natural justice; but the authority to reach decisions conferred on such administrative bodies is clearly distinct and separate from the judicial power conferred on courts, and the decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icer v. M.K. Mohammed Kunhi [1969] 71 ITR 815; AIR 1969 SC 430, the issue before the Supreme Court was as to whether the Income-tax Tribunal was having the power to stay the impugned assessment order during the pendency of the appeal. The Supreme Court found that as per the Income-tax Appellate Tribunal Rules, 1963, there was no power expressly conferred upon the Appellate Tribunal to stay the proceedings relating to recovery of penalty or tax due from an assessee during the pendency of the appeal. On a consideration of the wide powers given to the Tribunal, the Supreme Court held that the Income-tax Tribunal has the authority to pass such incidental orders which are necessary to make the exercise of the power granted to the Tribunal fully effective. In the said factual context, the Supreme Court observed thus (page 819 of ITR): 4. . . . Indeed, the Tribunal has been given very wide powers under section 254(1), for it may pass such orders as it thinks fit after giving full hearing to both the parties to the appeal. If the Income-tax Officer and the Appellate Assistant Commissioner have made assessments or imposed penalties raising very large demands and if the Appellate Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing and protecting the rights of the citizens and other persons who are subject to the jurisdiction of the Tribunal and for ensuring that such Tribunal will be able to command the confidence of the public. . . The Supreme Court in Rakesh Wadhawan v. Jagdamba Industrial Corporation [2002] 5 SCC 440, reiterated the legal position with regard to the jurisdiction to pass procedural orders though not specifically conferred by the statute. The consideration in the said decision was regarding the power of the court to pass interlocutory orders in the absence of a specific provision. The Supreme Court observed thus: 28. A statute can never be exhaustive, and therefore, Raghubar Dayal, J. speaking for himself and Wanchoo and Das Gupta, JJ. observed in Manohar Lal Chopra v. Rai Bahadur Rao Raja Seth Hiralal AIR 1962 SC 527, AIR at page 532, para 18, 'that the Legislature is incapable of contemplating all the possible circumstances which may arise in future litigation and consequently for providing the procedure for them'. Sometimes when a difficult situation arises it may demand such directions being made as would pragmatically meet the needs of the situation and resort can b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e special committee in exercise of the power under section 16D of the TNGST Act is final as provided under section 16D(3) shows the extent of powers of the Committee in the matter of assessment proceedings. The TNGST Act is a self-contained code, which makes provision for constitution of different authorities for the purpose of assessment and for challenging the assessment orders. The Act provides for appeals and revisions both before the statutory authorities as well as before the Special Tribunal. The assessee is entitled to file an appeal before the Tribunal, only after exhausting the remedy of appeal before the appellate authority. However, that is not the case of a revision before the Special Committee. The committee is entitled to exercise the power of revision, even in cases wherein there was no statutory appeal preferred by the assessee against the order of assessment. While exercising the revisional jurisdiction under section 16D of the TNGST Act, the Special Committee is well within their powers to pass such interlocutory orders, like stay of recovery during the pendency of the appeal, order for restoration of the revision, which was dismissed for default an ..... 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