2021 (8) TMI 1178 - HC - VAT and Sales Tax

Court directs petitioner to appeal before Appellate Authority within 60 days, emphasizes exhausting appellate remedies

The court disposed of the writ petitions, directing the petitioner to prefer an appeal before the Jurisdictional Appellate Authority within 60 days. The ... Maintainability of petition - availability of alternative remedy of appeal - Violation of principles of natural justice - enhancement of the petitioner's taxable turnover for assessment - TNVAT Act - HELD THAT:- The power of judicial review under Article 226 of the Constitution of India is to ensure that the processes through which a decision is taken by the Competent Authority in consonance with the provisions of the Act, but not the decision itself. This being the principles to be adopted while entertaining a writ petition, this Court is of the considered opinion that the factual disputes now raised, including the legal grounds are to be adjudicated before the Tribunal in these writ petitions. The consistency and uniformity in exercising the appeal remedy before approaching the High Court is to be developed both in the interest of the aggrieved person as well as in the interest of the institutions. Institutional respects are also to be protected by the High Court. Thus, this Court is of an opinion that mere pendency cannot be a ground for preferring an appeal and the High Court in such circumstances may take a lenient view by condoning the delay in preferring an appeal, if any arises. This being the principles to be considered, this Court is of an opinion that the petitioner has to approach the Tribunal in order to adjudicate the disputed facts as well as the legal grounds raised in these writ petitions. The petitioner is at liberty to prefer an appeal before the Jurisdictional Appellate Authority in the prescribed format and by complying with the provisions of the Act and the Rules, within a period of 60 days from the date of receipt of a copy of this order - petition disposed off. Issues Involved:1. Sustainability of the appellate order dated 24.05.2013.2. Quashing of the impugned notice dated 27.06.2013 proposing enhancement of taxable turnover.3. Violation of principles of natural justice.4. Jurisdictional issues and procedural fairness.5. Availability and necessity of appellate remedy.Detailed Analysis:1. Sustainability of the Appellate Order Dated 24.05.2013:The petitioner challenged the appellate order passed by the third respondent on 24.05.2013, arguing that it was in violation of the provisions of the Sales Tax Act, specifically Section 3. The petitioner claimed that the order was passed without providing an opportunity to be heard, thus violating principles of natural justice. The court noted that the appellate order did not give the petitioner a reasonable opportunity to present their case, particularly concerning the proposed assessment under the Tamil Nadu Value Added Tax Act.2. Quashing of the Impugned Notice Dated 27.06.2013:The petitioner sought to quash the notice dated 27.06.2013, which proposed the enhancement of taxable turnover for the assessment year 2007-2008. The petitioner contended that the notice was issued without proper jurisdiction and without providing an opportunity to be heard. The court observed that the enhancement of turnover was made without issuing a separate notice to the petitioner, thereby denying them the opportunity to establish their case.3. Violation of Principles of Natural Justice:The petitioner argued that the orders impugned were unreasonable and in violation of the principles of natural justice. The court found that the petitioner was not given notice of the intention to treat the entire turnover of sales involving dealers outside Tamil Nadu as local sales. Section 52(3) of the Tamil Nadu Value Added Tax Act requires that the appellant be given a reasonable opportunity of being heard. The court concluded that no such opportunity was provided, making the orders impugned unreasonable and violative of natural justice principles.4. Jurisdictional Issues and Procedural Fairness:The court discussed the importance of jurisdictional issues and procedural fairness. It emphasized that when an appellate remedy is available under the provisions of the Act, the High Court need not adjudicate disputed facts on merits. The Tamil Nadu Sales Tax Appellate Tribunal is empowered to adjudicate jurisdictional issues, factual disputes, and legal grounds, including violations of principles of natural justice. The court reiterated that the High Court may entertain a writ petition only if a direct violation of principles of natural justice is established.5. Availability and Necessity of Appellate Remedy:The court underscored the importance of exhausting appellate remedies before approaching the High Court. It highlighted that the appellate remedy provided under the Statutes should not be undermined. The Tamil Nadu Sales Tax Appellate Tribunal consists of expert presiding officers well-versed in taxation laws and is competent to decide both factual and legal issues. The court stated that filing an appeal is the rule, and entertaining a writ petition is an exception. The court directed the petitioner to prefer an appeal before the Tribunal, emphasizing that institutional respect and the legislative intention behind appellate remedies must be maintained.Conclusion:The court disposed of the writ petitions, directing the petitioner to prefer an appeal before the Jurisdictional Appellate Authority within 60 days. The Appellate Authority was instructed to consider the appeal on merits and in accordance with the law, providing an opportunity to the petitioner. The court emphasized the necessity of exhausting appellate remedies and maintaining institutional respect, reiterating that the High Court should not usurp the powers of appellate authorities by adjudicating merits under Article 226 of the Constitution of India.