2015 (5) TMI 1182 - HC - VAT and Sales Tax

Dismissal of petition challenging penalty orders on sanitary items classification; Authorities complied with court directions & natural justice.

Cochin Sanitary Stores Versus Intelligence Officer, Commercial Tax Officer (Recovery), And Assistant Commissioner,

The court dismissed the writ petition challenging penalty orders related to the classification of sanitary items. The court found that the authorities ... Imposition of penalty - classification of sanitary items - HELD THAT:- The matter to be noted is that, this Court specifically directed the petitioner to appear on 28.02.2015 with all relevant documents. The petitioner also appeared and submitted all the documents. The natural justice in such circumstances could only be understood in terms of the direction of this Court, not beyond. It is no doubt that, the authorities are bound to verify the relevant materials produced by the petitioner. The procedure adopted cannot be found fault with. If the petitioner has any grievance on the merit of the order, he is at liberty to challenge the same in appropriate proceedings - petition dismissed. Issues:Challenge to penalty orders (Exts.P26 to P30) based on classification of sanitary items; Compliance with court directions; Violation of natural justice by authorities; Opportunity for petitioner to present case.1. Challenge to Penalty Orders:The petitioner filed a writ petition challenging penalty orders (Exts.P26 to P30) related to the classification of sanitary items. In a previous case, the court set aside the penalty and directed the petitioner to appear before the 1st respondent with necessary documents. The court emphasized that the classification issue involves a mix of fact and law, and the taxing authority must determine the correct classification before concluding that the item was misclassified.2. Compliance with Court Directions:The petitioner's counsel argued that despite providing details and requesting further opportunity before proceeding, they were not given the chance. However, the court noted that the petitioner appeared on the specified date with all relevant documents as directed. The court clarified that natural justice in this context is defined by the court's directions, and the authorities are obligated to verify the materials presented by the petitioner. The court found no fault in the procedure adopted by the authorities.3. Violation of Natural Justice and Opportunity for Petitioner:The court observed that the authorities followed the court's directions by verifying the documents and reaching a conclusion. It emphasized that if the petitioner disagrees with the order on its merits, they have the liberty to challenge it through appropriate proceedings. Therefore, the court dismissed the writ petition, granting the petitioner the freedom to challenge the order through the proper channels.