Premature challenge to tax clearance certificate refused where assessment remained pending and turnover was not finalised.

Refusal to issue a tax clearance certificate for renewal of an IMFL licence was treated as premature because the relevant assessment had not been finalised and the turnover figures remained tentative. Entitlement to the certificate was held to depend on the final assessment by the assessing authority, so the writ challenge was not entertained at that stage. The constitutional objection based on article 286 of the Constitution read with sections 14 and 15 of the Central Sales Tax Act was left open for consideration in the assessment proceedings and before the departmental authorities, as it involved mixed questions of fact and law.

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Issues: Whether the writ petitions challenging refusal of a tax clearance certificate and the applicability of section 4-A of the Pondicherry General Sales Tax Act, 1967 were liable to be entertained at the stage when the assessments were not finalised.

Analysis: The writ petitions were filed against refusal to issue a tax clearance certificate for renewal of an IMFL licence. The assessment for the relevant year had not been finalised, and the turnover figures were only tentative. The Court held that the challenge was premature and that the question whether the assessee was entitled to the certificate depended on the final assessment of turnover by the assessing authority. The broader constitutional objection based on article 286 of the Constitution of India read with sections 14 and 15 of the Central Sales Tax Act, 1956 was left open for consideration in the assessment proceedings and before the departmental authorities, since mixed questions of fact and law were involved.

Conclusion: The writ petitions were not entertained at this stage and no interference was called for; the assessee was left to raise the issues before the assessing and appellate authorities.

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