Statutory appellate remedy must be exhausted before merits review in a tax-rate dispute over imported goods.

Dispute over the rate of tax on imported goods under the Tamil Nadu General Sales Tax Act, 1959 was not examined on merits because the assessee had not first exhausted the statutory appeal remedy. The Court directed the assessee to file the prescribed appeals before the first appellate authority, which was to decide them on merits uninfluenced by earlier observations. Delay, if any, was to be condoned, and the controversy was left for adjudication in the proper appellate forum because the legal and factual contentions had not yet been determined there.

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Issues: Whether the assessee should be directed to pursue the statutory appellate remedy instead of having the matter adjudicated on merits in these appeals.

Analysis: The challenge concerned the rate of tax on imported goods under the Tamil Nadu General Sales Tax Act, 1959, but the assessment orders were questioned without first exhausting the appeal provided by the Act. The Court noted that the factual and legal contentions raised by the assessee required adjudication in the proper appellate forum and that such adjudication had not yet taken place. Since an important question of law was involved and the liability was likely to recur, the Court directed the assessee to file statutory appeals and required the first appellate authority to decide them on merits, uninfluenced by earlier observations, while also condoning delay if any.

Conclusion: The matter was not decided on merits and the assessee was directed to pursue the statutory appellate remedy before the first appellate authority.

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