1981 (8) TMI 206 - HC - VAT and Sales Tax

Assessee's Writ Appeal Dismissed Over Sales Tax Assessment Forms

The High Court of Madras dismissed a writ appeal by an assessee challenging a sales tax assessment due to non-production of required forms. The court ... Principles of natural justice - exhaustion of statutory remedies - enabling power to summon documents under section 54 - availability of alternate statutory remedy - remand by appellate tribunal for production of documentsPrinciples of natural justice - enabling power to summon documents under section 54 - availability of alternate statutory remedy - remand by appellate tribunal for production of documents - Whether the assessing authority's failure to issue summons under section 54 to obtain E-II forms and proceeding to assess the turnover amounted to a violation of the principles of natural justice permitting the assessee to invoke writ jurisdiction despite the availability of statutory remedies. - HELD THAT: - The Court held that section 54 is an enabling provision empowering the assessing authority to compel production of documents, but non-use of that power does not, by itself, constitute a breach of the principles of natural justice. The Tribunal had remanded the matter to the assessing authority with a direction to give the assessee an opportunity to produce the E and C forms; thereafter the assessee sought to have the assessing officer summon the selling dealer, but the assessing officer declined on the ground that the assessee was obliged to collect the forms from the selling dealer. The record showed the selling dealer was withholding the E-II forms for reasons of outstanding dues, and therefore the Court found it incumbent on the assessee to settle those dues and obtain the forms. In these circumstances the absence of issuance of summons by the assessing officer could not be relied upon as establishing a violation of natural justice. Because no breach of natural justice was shown, the existence of an alternative statutory remedy justified dismissal of the writ petition and denial of relief in writ jurisdiction.No violation of the principles of natural justice was established by the assessing officer's non-issuance of summons; the availability of alternate statutory remedies and the Tribunal's remand rendered the writ unsustainable.Final Conclusion: Writ appeal dismissed; the High Court's refusal to entertain the writ petition was upheld because no breach of natural justice was shown and alternative statutory remedies were available and not exhausted. The High Court of Madras dismissed a writ appeal filed by an assessee regarding the assessment of sales tax due to failure to produce required forms. The court held that there was no violation of natural justice principles as the assessing authority had the power to compel the production of documents, and the appellant was obligated to settle dues and obtain the necessary forms. The appeal was dismissed as no violation of natural justice was established. The decision was based on the availability of alternative remedies provided under the statute.