Petitioner must exhaust statutory appellate remedy under TNVAT Act. Appeal within 4 weeks. Delay to be condoned.

The court concluded that the petitioner must exhaust the statutory appellate remedy provided under the TNVAT Act. The petitioner was given the liberty to prefer an appeal within four weeks from the date of receipt of the court's order. The respondents were directed to entertain the appeal by condoning any delay and decide the matter on merits in accordance with the law. The writ petition was disposed of with this liberty, and the connected miscellaneous petitions were closed without costs.

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Issues Involved:
1. Erroneous application of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) by the Assessing Officer.
2. Jurisdictional error and non-application of mind by the Assessing Officer.
3. Necessity of exhausting statutory appellate remedies before filing a writ petition.
4. Judicial review under Article 226 of the Constitution of India.

Issue-wise Detailed Analysis:

1. Erroneous Application of TNVAT Act:
The petitioner argued that the Assessing Officer incorrectly applied the provisions of the TNVAT Act, specifically Section 19, as amended by the Tamil Nadu Act, 13 of 2015, effective from 29.01.2016. The petitioner contended that the assessment year in question fell before this amendment, and therefore, the pre-amended provisions should have been applied. The pre-amended Section 19 allowed input tax credit for tax paid or payable under the TNVAT Act by the registered dealer on purchases of taxable goods. The Assessing Officer's application of the amended Section 19 to a period before the amendment constituted a jurisdictional error.

2. Jurisdictional Error and Non-application of Mind:
The petitioner claimed that the assessment order was passed without proper application of mind, leading to a jurisdictional error. The petitioner argued that such an error justified the filing of a writ petition without exhausting the statutory appellate remedies. The court noted that even if there was an erroneous application of the TNVAT Act, the appellate authority was empowered to correct such errors and consider all legal grounds raised by the parties.

3. Necessity of Exhausting Statutory Appellate Remedies:
The court emphasized the importance of exhausting statutory appellate remedies before approaching the High Court. Section 51 of the TNVAT Act provides for an appeal to the Appellate Deputy Commissioner, and Section 58 allows for an appeal to the Appellate Tribunal. The court highlighted that exhausting the appeal remedy is the rule, and dispensing with it is an exception. The court stated that the appellate authority is the final fact-finding authority, and its findings, along with those of the original authority, are crucial for the High Court's judicial review under Article 226 of the Constitution of India.

4. Judicial Review under Article 226:
The court reiterated that the power of judicial review under Article 226 is to scrutinize the processes and procedures adopted by the competent authorities, not the decision itself. The High Court cannot resolve disputed issues based on affidavits alone and must rely on the findings of the original and appellate authorities. The court cited several judgments to support the principle that writ petitions should not be entertained if an effective alternative remedy is available, except in exceptional circumstances where there is a gross injustice or violation of fundamental rights.

Conclusion:
The court concluded that the petitioner must exhaust the statutory appellate remedy provided under the TNVAT Act. The petitioner was given the liberty to prefer an appeal within four weeks from the date of receipt of the court's order. The respondents were directed to entertain the appeal by condoning any delay and decide the matter on merits in accordance with the law. The writ petition was disposed of with this liberty, and the connected miscellaneous petitions were closed without costs.

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