2007 (2) TMI 606 - HC - VAT and Sales Tax

High Court upholds validity of assessment order under Tamil Nadu Sales Tax Act, directs petitioner to pursue appeal remedies.

ADR. Plastics Versus Commercial Tax Officer, Tirupparankundram Assessment Circle, Madurai

The High Court upheld the assessment order's validity, emphasizing the availability of appeal remedies under the Tamil Nadu General Sales Tax Act. The ... - Issues:Challenge to assessment order under Tamil Nadu General Sales Tax Act, 1959Analysis:The petitioner filed a petition seeking to set aside an assessment order as illegal, arbitrary, and violative of natural justice and statutory provisions. The High Court noted that the assessment order was appealable, providing the assessee with remedies under sections 31 and 36 of the Tamil Nadu General Sales Tax Act. The authority to assess was not disputed, and the challenge focused on the regularity of proceedings and the authority's power to determine taxable turnover. The court emphasized that the Act offers a comprehensive mechanism to challenge assessment orders, emphasizing the need to follow prescribed procedures rather than resorting to Article 226 petitions. The court cited the case of Titaghur Paper Mills Co. Ltd. v. State of Orissa to highlight the assessee's right to appeal and seek stay of recovery for disputed tax amounts during the appeal process.The High Court acknowledged that the petitioner had been pursuing the matter before the Tribunal since 2003, and due to the Tribunal's abolition in 2005, the court granted the petitioner another opportunity to pursue the appellate remedy. The petitioner was permitted to file an appeal before the appellate authority within two weeks from the date of the court's order. The court emphasized the importance of following the appellate process to ensure justice and disposed of the writ petition accordingly, without imposing any costs.