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2007 (11) TMI 585 - MADRAS HIGH COURTStatutory remedy of appeal available before the appellate authority - Maintainability - Whether the respondents are entitled to demand increased sales tax at the rate of 16 per cent, by way of second clarification, after the assessment is completed? Held that:- On account of the pre-conclusion by the superior authority, namely the first respondent, there cannot be any efficacious alternative remedy and hence, we are of the considered view that the writ petitions are legally maintainable. Subsequent clarification withdrawing concessions, which was given earlier could be done only prospectively and not with retrospective effect. In the instant case, admittedly, as per the clarifications made by the respondents for the assessment year 2002-03, for the aforesaid items sales tax at four per cent was made and the same was completed during October 2003, as clarified by the respondents herein. By subsequent clarification, dated May 18, 2004, made by the first respondent, the second respondent had issued the impugned order, dated March 4, 2005 to the petitioners, demanding the tax at 16 per cent. In fact, the demand made by the respondents is nothing, but an order imposing additional burden of indirect tax on the petitioners with retrospective effect, which is not legally sustainable. Thus to meet the ends of justice, all the writ appeals have to be allowed, setting aside the impugned orders passed by the respondents.
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