2013 (5) TMI 481 - HC - VAT and Sales Tax

Court upholds penalty order under TNGST Act, emphasizing compliance with time limits and alternative appeal options.

The court dismissed the writ appeal challenging the penalty order under Section 16(2) of the TNGST Act, 1959. It held that the revised assessment order ... Maintainability of petition u/s 16(2) of the Tamil Nadu General Sales Tax Act, 1959 after the amendments dated 01.07.2002 came into force – Petition challenging the order of the respondent levying penalty under revision of assessment. Held that - we see Section 16(1)(a) of the Act, it clearly says the revision of the assessment under Section 16 is permitted within five years from the date of order of the final assessment by assessing authority. Earlier it was incorporated as five years from the expiry of the year to which the tax relates. After considering the relevant amendments, there is no ambiguity for escaped assessment. The authority can definitely look into the matter and pass orders within five years from the date of order of the final assessment. Admittedly, the order was passed in this case on 30.04.2004 which is much after coming into force of the amending Act viz., 01.07.2002. Writ Appeal is dismissed. Issues:Challenge to order of penalty under Section 16(2) of TNGST Act, 1959 - Maintainability of writ petition against assessment order - Interpretation of Section 16(1) of TNGST Act - Applicability of amended Act - Alternative remedy of appeal under Section 31 of the Act.Analysis:The appellant challenged the order of penalty under Section 16(2) of the TNGST Act, 1959, through a writ petition after the assessing authority passed the assessment order for the year 2001-2002. The appellant argued that the amended Act substituted the time limit for revising assessments to 'five years from the date of the final assessment order,' effective from 01.07.2002. The appellant contended that the revised order should have been passed within five years from the expiry of the relevant year, not from the date of the order, as per the original Act. Despite having the right to appeal, the appellant chose to file a writ petition, challenging the applicability of the amended Act.The respondent argued that the writ petition was not maintainable due to the availability of an alternative remedy of appeal under Section 31 of the Act. Referring to a similar case, the respondent contended that the amendment Act was in force from 01.07.2002, making the writ petition not maintainable. The respondent emphasized that the original assessment order was passed after the amendment came into effect, justifying the revised assessment order within five years from the date of the original order.The court analyzed Section 16(1)(a) of the TNGST Act, noting the amendment that changed the time limit for revising assessments. The court clarified that the revised assessment order was valid as it was passed within the five-year period from the date of the final assessment order, as per the amended Act. Citing a previous judgment, the court upheld the validity of the revised order, emphasizing adherence to the amended provisions. The court dismissed the writ appeal, affirming the authority's action within the statutory time limit.In conclusion, the court dismissed the writ appeal, finding no grounds to interfere with the learned Single Judge's order. The court upheld the revised assessment order's validity under the amended Act, emphasizing compliance with the prescribed time limit. The court closed the connected miscellaneous petition without costs, maintaining the authority's decision within the statutory framework.