2007 (4) TMI 647 - HC - VAT and Sales Tax

Summary

Issues:
1. Writ petition for issuance of a writ of certiorarified mandamus calling for records under the Tamil Nadu General Sales Tax Act, 1959 and Central Sales Tax Act, 1956.
2. Rejection of application under section 16D of the TNGST Act, 1959 due to the repeal of the Act.
3. Interpretation of saving provisions under the Tamil Nadu Value Added Tax Act, 2006.
4. Applicability of Supreme Court ruling in Gammon India Ltd. v. Spl. Chief Secretary regarding accrued rights under repealed tax laws.
5. Setting aside impugned orders and remitting the case for reconsideration.

Analysis:

1. The petitioner filed writ petitions seeking a writ of certiorarified mandamus to review records under the Tamil Nadu General Sales Tax Act, 1959, and the Central Sales Tax Act, 1956. The petitions aimed to quash assessment orders and direct the authorities to entertain the petitioner's applications submitted under section 16D of the TNGST Act, 1959. The court referred to a similar case where the petitioner's rights were upheld, leading to the setting aside of impugned orders and remitting the matter for reconsideration.

2. The rejection of the petitioner's application under section 16D of the TNGST Act, 1959 was based on the repeal of the Act effective from January 1, 2007. The Commissioner of Commercial Taxes contended that post-repeal, applications under the repealed Act could not be entertained. However, the petitioner argued that their accrued rights and vested interests could not be divested by the repealed Act, citing the saving provisions under the Tamil Nadu Value Added Tax Act, 2006.

3. The court analyzed the provisions of the Tamil Nadu Value Added Tax Act, 2006, particularly section 88, which saved certain actions taken under the TNGST Act, 1959. Drawing parallels with a Supreme Court ruling in Gammon India Ltd. v. Spl. Chief Secretary, the court emphasized that accrued rights under the repealed Act should be protected. The court held that the saving provision in the Tamil Nadu Value Added Tax Act, 2006, preserved the petitioner's rights under the TNGST Act, thereby allowing the application under section 16D to be reconsidered.

4. The judgment highlighted the applicability of the Supreme Court ruling in Gammon India Ltd. v. Spl. Chief Secretary, which established that rights and liabilities accrued under repealed tax laws should be maintained post-repeal. The court reasoned that vested rights under the TNGST Act, 1959 could not be divested merely due to the repeal of the Act. Therefore, the rejection of the petitioner's application was deemed legally unsustainable, leading to the setting aside of the order for reconsideration.

5. In conclusion, the court disposed of the writ petitions by setting aside the impugned orders and remitting the matter back to the authority concerned for reconsideration, including addressing any issues of laches. The judgment did not impose any costs on the parties, and the connected miscellaneous petitions were closed accordingly.