2008 (3) TMI 606 - HC - Indian Laws

Court dismisses writ petition challenging assessment order, emphasizes statutory appeal process. Tax levy legal but not jurisdiction-free.

The court dismissed the writ petition challenging an assessment order, emphasizing the importance of following the statutory appeal process. The court ... Writ jurisdiction - Alternative remedy Issues:1. Jurisdiction of tax levy on immovable properties.2. Time-barred demand under Section 17(6) and (7) of the Act.3. Maintainability of writ petition against an order of assessment.4. Rule of alternate remedy in cases involving violation of principles of natural justice.5. Violation of principles of natural justice in the assessment process.6. Applicability of judgments in similar cases.7. Justification for not availing statutory remedy of appeal.Jurisdiction of tax levy on immovable properties:The petitioner argued that tax could only be levied on goods, not immovable properties, making the levy without jurisdiction. However, the court disagreed, stating that it might be an illegal levy but not without jurisdiction. The court emphasized that the rule of alternate remedy is not a bar in cases involving violation of natural justice or acts without jurisdiction.Time-barred demand under Section 17(6) and (7) of the Act:The petitioner contended that the demand was time-barred under Section 17(6) and (7) of the Act, making a writ petition maintainable against the assessment order. The court analyzed previous judgments cited by the petitioner but concluded that the petitioner should pursue the alternate remedy of appeal, as the assessment was not time-barred like in the cases referenced.Maintainability of writ petition against an order of assessment:The court noted that the challenge in the writ petition was against the assessment order for a specific year. The petitioner's argument for the writ petition was based on jurisdiction and time-barred demand, which the court found insufficient to bypass the statutory remedy of appeal.Rule of alternate remedy in cases involving violation of principles of natural justice:The court highlighted that the rule of alternate remedy does not apply in cases involving violations of natural justice, acts without jurisdiction, or when challenging the vires of a statute. In this case, the court found no violation of natural justice and deemed the argument of levy without jurisdiction as invalid.Violation of principles of natural justice in the assessment process:The court observed that the petitioner failed to demonstrate any violation of natural justice during the assessment process. The court emphasized that no attempt was made to raise this point, and the petitioner's contentions were primarily on the merits, which should be addressed before the appellate authority.Applicability of judgments in similar cases:The court analyzed the judgments cited by the petitioner, emphasizing that the judgments did not support the petitioner's contention to bypass the statutory remedy of appeal. The court differentiated the facts of the cited cases from the current case and concluded that the petitioner should pursue the statutory remedy.Justification for not availing statutory remedy of appeal:The court noted that there was no justification for the petitioner to not avail of the statutory remedy of appeal. While the petitioner argued that the levy of tax was without jurisdiction, the court disagreed and emphasized that the petitioner should pursue the alternate remedy of appeal for a comprehensive review of the merits.In conclusion, the court dismissed the writ petition without prejudice to the petitioner's right to file a statutory appeal, highlighting the importance of following the statutory remedy process in challenging assessment orders.