2007 (8) TMI 674 - HC - VAT and Sales Tax

Importance of Exhausting Statutory Remedies Before Court: Emphasizing Eligibility for Sales Tax Exemption

The court emphasized the importance of exhausting statutory remedies before approaching the court directly, particularly in matters concerning the ... - Issues:1. Proper execution of remand order by assessing officer.2. Interpretation of entry No. 6 of the Third Schedule to the TNGST Act, 1959 for exemption from sales tax.3. Bypassing statutory remedies and approaching court directly.4. Time limit for filing appeal.Analysis:1. The petitioner's grievance was that the assessing officer did not properly carry out the remand order's directions by passing the impugned orders based on his own understanding of the law. The court emphasized that statutory remedies like appeal, second appeal, and revision are available against assessment orders. The petitioner was advised to establish before the authorities that the goods sold fall within the purview of entry No. 6 of the Third Schedule to the TNGST Act for exemption from sales tax.2. The crucial question in these cases was whether the sale of the petitioner's product qualified for exemption from sales tax under entry No. 6 of the Third Schedule to the TNGST Act. The court clarified that the petitioner needed to provide necessary materials to demonstrate that the goods were exempted. It was highlighted that the court cannot determine exemption without the required evidence, and the petitioner should pursue the matter before the appellate authority to obtain a decision.3. The court referenced judgments emphasizing the importance of not bypassing statutory remedies. It cited a Supreme Court case where it was held that questions of fact should be raised before the statutory appellate authority rather than approaching the court directly. The court stressed that the petitioner should exhaust statutory remedies for proper adjudication of the matter.4. Regarding the time limit for filing an appeal, the petitioner requested an extension beyond the 30-day period, which the statute allowed for reasonable cause. The court granted an additional 10 days for filing the appeal, considering the petitioner's genuine efforts in pursuing the matter. Ultimately, the writ petitions were dismissed with no costs, and connected miscellaneous petitions were also dismissed.This detailed analysis of the judgment highlights the issues related to the proper execution of remand orders, interpretation of statutory provisions for exemption from sales tax, the importance of exhausting statutory remedies before approaching the court directly, and the extension of time limits for filing appeals under the relevant statute.