Time limit and pre-deposit set to challenge assessment orders under Tamil Nadu VAT Act for 2014-2016

The High Court directed the petitioner to file a statutory appeal within a specified time frame and pre-deposit requirement for challenging assessment orders under the Tamil Nadu Value Added Tax Act for the years 2014-2015 and 2015-2016. The court emphasized the need for compliance to balance the interests of both parties. The writ petitions were disposed of without costs, and the connected Writ Miscellaneous Petition was closed accordingly.

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Issues involved:
Challenging assessment orders for Assessment Years 2014-2015 and 2015-2016 under the Tamil Nadu Value Added Tax (TNVAT) Act, 2006.

Assessment Year 2014-2015:
The petitioner challenged the assessment order where the tax amount of Rs. 3,32,800/- was recovered. The petitioner's argument included disruptions caused by the Covid-19 pandemic and subsequent factory closure due to violations under the Water (Prevention and Control of Pollution) Act, 1974. The petitioner contended that the factory closure led to unawareness of the impugned order.

Assessment Year 2015-2016:
In this assessment year, the petitioner suffered adverse orders for an amount of Rs. 5,83,125/-. The respondent argued that the writ petitions lacked merit and should be dismissed due to the expiration of the limitation period for filing an appeal. The petitioner was directed to file a statutory appeal before the Appellate Commissioner within 30 days from the date of receipt of the order, along with a pre-deposit of 50% of the disputed tax amount to balance the interests of the petitioner and the revenue.

Conclusion:
The High Court disposed of both writ petitions by directing the petitioner to file a statutory appeal within the specified time frame and pre-deposit requirement. The appeal for the Assessment Year 2015-2016 would be numbered upon compliance, while for the Assessment Year 2014-2015, the appeal would be numbered if filed within the stipulated period. The court made these decisions to balance the interests of both parties. The writ petitions were disposed of with no costs, and the connected Writ Miscellaneous Petition was closed accordingly.

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