2023 (8) TMI 114 - HC - VAT and Sales Tax

Maintainability of appeal - limitation under Section 51 of the Tamil Nadu Value Added Tax (TNVAT) Act 2006 - HELD THAT - It is noticed that the petitioner s tax amount of Rs. 3, 32, 800/- has already been recovered towards duty that was confirmed in the Assessment Order dated 20.01.2022 for the Assessment Year 2014-2015. The petitioner has not paid the tax that was determined vide impugned order dated 25.07.2022 for the Assessment Year 2015-2016 amounting to Rs. 5, 83, 125/- - To balance the interests of the petitioner and the revenue this Court is inclined to dispose these two writ petitions by directing the petitioner to file a statutory appeal before the Appellate Commissioner under Section 51 of the TNVAT Act within a period of 30 days from the date of receipt of a copy of this order together with a pre-deposit of 50% of the disputed tax. Subject to such compliance the appeal for the Assessment Year 2015-2016 shall be numbered. As far as the Assessment Year 2014-2015 is concerned since the entire amount has been recovered the appeal shall be numbered if such appeal is filed within a period of 30 days from the date of receipt of a copy of this order. Writ Petitions are disposed of.

Summary

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.