Court dismisses Writ Appeals, directs assessee to file within 4 weeks. Authority to decide independently.

The court dismissed the Writ Appeals, directing the assessee to file appeals against the assessment orders within four weeks before the statutory authority. The appellate authority was instructed to consider the amount deposited by the assessee and decide the appeals on their merits independently from the observations in the Writ Petitions or Writ Appeals.

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Issues Involved:
1. Assessment of tax rate on sales of Concrete Sleepers.
2. Violation of principles of natural justice.
3. Applicability of circulars issued by the Commissioner.
4. Jurisdiction and application of alternative remedies under Article 226 of the Constitution of India.

Issue-Wise Detailed Analysis:

1. Assessment of Tax Rate on Sales of Concrete Sleepers:
The primary issue revolves around the tax rate applicable to the sales of Concrete Sleepers made by the assessee to the Southern Railways in other states. The Assessing Officer determined that the assessee was liable to pay tax at 12.5% instead of the 4% already paid, citing clarifications issued by the Principal Secretary and Commissioner of Commercial Tax, Chepauk, Chennai. This was based on the assessment that the sales were inter-state and hence subject to local VAT rates of the states where the purchasers were located.

2. Violation of Principles of Natural Justice:
The assessee contended that the principles of natural justice were violated as their request for further hearing was not granted. They argued that the Assessing Officer, after the initial assessment order was set aside for lack of personal hearing, should have initiated fresh proceedings rather than merely hearing the assessee in person. The learned Single Judge dismissed this contention, stating that the earlier Writ Petitions were allowed solely to provide an opportunity for a personal hearing, which was subsequently granted.

3. Applicability of Circulars Issued by the Commissioner:
The assessee argued that the circulars issued in 1981 and 2002, which were binding on the Assessing Officer, were not considered. The Assessing Officer, however, based the final assessment orders on the clarifications issued by the Principal Secretary and Commissioner of Commercial Tax, Chepauk, Chennai. The court noted that whether the Assessing Officer's reasoning, based on these circulars, was correct or not should be adjudicated by the appellate authority.

4. Jurisdiction and Application of Alternative Remedies under Article 226 of the Constitution of India:
The court emphasized that the power under Article 226 is extraordinary and discretionary, and should not be exercised when a statute provides a specific remedy. The court held that the orders impugned were appealable and there was no proper explanation from the assessee as to why the factual aspects could not be decided by the appellate authority. The court cited several judgments, including Raj Kumar Shivhare v. Assistant Director, Directorate of Enforcement & another, to reinforce that when a statutory forum is created for redressal, it should not be bypassed for a writ petition.

Conclusion:
The court dismissed the Writ Appeals, affirming that the only course open to the assessee was to file appeals against the assessment orders. The court granted the assessee four weeks to file appeals before the statutory authority, considering that they had been actively pursuing their rights through legal channels. The appellate authority was directed to consider the amount already deposited by the assessee and to decide the appeals on their merits without being influenced by observations made in the Writ Petitions or Writ Appeals.

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