Tax Assessment Challenge: Oil Coolers Case Dismissed, Statutory Appeal Route Opened for Petitioner Within Three Weeks

HC dismissed writ petition challenging tax assessment of oil coolers, allowing petitioner to file statutory appeal within three weeks. The court directed appellate authority to consider the appeal on merits, without interfering with the original assessment order. No costs were awarded, and the petitioner was given opportunity to present arguments in the statutory appeal process.

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Issues involved: Classification of oil coolers as heat exchangers under HSN 8419, mis-classification leading to demand of Rs. 34,38,17,664, non-reversal of Input Tax Credit on credit notes, statutory appeal timeline.

Classification of oil coolers: The petitioner, a manufacturer and supplier of oil coolers, challenged an assessment order dated 30.12.2023, which concluded that oil coolers should be classified under chapter 8708 instead of 8419. The petitioner argued that an oil cooler falls within HSN 8419 as a heat exchange unit, supported by a certificate from a Chartered Engineer. The petitioner contended that the impugned order disregarded the engineer's certificate and erroneously equated oil coolers with radiators. The court noted that the petitioner's grievance should be raised during appellate proceedings as the impugned order, issued after a personal hearing, did not warrant interference under Article 226 of the Constitution.

Statutory appeal timeline: The impugned order dated 30.12.2023 set a limitation period for appeal, expiring soon. The petitioner filed a writ petition on 16.03.2024, seeking permission to file a statutory appeal. The court allowed the petitioner to file a statutory appeal within three weeks and directed the appellate authority to receive and decide on the appeal based on merits and in accordance with the law. No costs were awarded, and the related miscellaneous petition was closed.

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