2001 (11) TMI 998 - HC - VAT and Sales Tax

Court emphasizes exhausting statutory remedies before resorting to writs under MP tax laws

Steel Tubes of India Limited Versus Assistant Commissioner of Commercial Tax and others

The court dismissed the writ petition challenging assessment orders under the Madhya Pradesh General Sales Tax Act, 1958 and Madhya Pradesh Commercial Tax ... - Issues:Challenge to assessment orders passed under Madhya Pradesh General Sales Tax Act, 1958 and Madhya Pradesh Commercial Tax Act based on alleged arbitrariness and contrary to remand order.Analysis:The petitioner filed a writ challenging an assessment order dated May 29, 2001, and an order passed under the Madhya Pradesh General Sales Tax Act, 1958, and Madhya Pradesh Commercial Tax Act for the period from April 1, 1989, to March 31, 1990. The main contention was that these orders were passed contrary to an earlier remand order by higher authorities. The petitioner argued that repeated setting aside of assessment orders and directions given for assessment were not followed, leading to arbitrariness. The counsel relied on legal precedents to support the claim of arbitrariness. However, the judge found no merit in the writ petition and dismissed it summarily.The judge emphasized that the appropriate remedy for the petitioner was to file an appeal or revision against the impugned assessment orders. While acknowledging that writs can be entertained against assessment orders, the judge highlighted the importance of exhausting statutory remedies first. It was noted that the grounds raised in the writ could also be brought up in an appeal or revision. The judge pointed out that allowing writs in such cases could lead to a flood of similar petitions and that the petitioner had the option to challenge the assessment through legal avenues available under the law.Furthermore, the judge declined to entertain the writ petition against the assessment order, stating that the petitioner had the right to file an appeal or revision and raise all legal and factual grounds. The judge stressed that each case had its own facts and discretion should be exercised accordingly. It was made clear that the petitioner could approach the court through a writ or reference after exhausting all statutory remedies. Ultimately, the judge found no justification to sustain the writ petition and dismissed it in limine, indicating that the writ petitions were also dismissed.