Madras HC in the case of United Processors Versus The State Tax Officer

Case Covered:

United Processors

Versus

The State Tax Officer

Facts of the Case:

The Respondent by Order Nos. TNGST 3223580 / 2002-03 dated 23.03.2018, TNGST 3223580 / 2003-2004 dated 23.03.2018, and TNGST 3223580 / 2004-2005 dated 07.05.2018 had re-assessed the liability of the tax in connection with the use of chemicals in printing works for the assessment years 2002-2003, 2003-2004 and 2004-2005 under the Tamil Nadu General Sales Tax Act, 1959 (hereinafter referred to as ‘the TNGST Act’ for short) in respect of the Petitioner, who had received the copies of those orders on 15.05.2018, 14.04.2018 and 14.05.2018 respectively. The Petitioner was entitled to prefer an appeal against those orders under Section 31 of TNGST Act, within a period of 30 days from the date of their receipt before the Appellate Authority, who has been empowered to condone the delay in filing such appeal for an extended period of 30 days, if sufficient cause for not preferring the appeal within that period is made out. However, the Petitioner did not prefer any such appeal before the Appellate Authority but has instead filed these Writ Petitions on 03.10.2018 challenging the orders passed by the Respondent beyond the maximum limitation period of 60 days from the date of receipt of a copy of those orders.

Observations:

It has been clearly explained in the impugned orders itself that though in the order dated 01.09.2006 in the earlier Writ Petitions in W.P. Nos. 15355 and 15356 of 2005 filed by the Petitioner challenging the notices to re-assess the tax, this Court had permitted to proceed further in accordance with the law, the assessing authority was unable to do so on account of another order of interim stay passed by this Court in the Writ Petition in W.P. No. 21601 of 2004 filed by Dyers Association of Tirupur, till it had been finally decided by order dated 21.07.2017 in favour of the Respondent. This would go to show that the Respondent could not be faulted for the time taken for the finalization of the proceedings.

The Decision of the Court:

It is brought to notice by the Learned Government Advocate appearing for the Respondent that the Division Bench of this Court in State of Tamil Nadu -vs- Tex-in-Printers (Order dated 04.10.2013 in Tax Case (Revision) No. 49 of 2009) has reiterated that after the introduction of Section 3-B and the amendment made to the definition of ‘sale’ in Section 2(n)(ii) of the TNGST Act, the transfer of goods involved in works contract would amount to ‘sale’ and the entire turnover has become assessable to tax and that the same view has been expressed by another Division Bench of this Court in State of Tamil Nadu -vs- Tvl. Tamil Nadu Co-operative Textile Processing Mills Limited (Order dated 25.06.2019 in Tax Case No. 2319 of 2008), meaning thereby that the Petitioner cannot have any grievance for the re-assessment of tax liability based on that settled question of law.

As a result, these Writ Petitions, which lack merits, are dismissed. Consequently, the connected Miscellaneous Petition is closed. No costs.

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