Datacraft India Ltd., v. Assistant Commissioner (Ct)

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED : 09.07.2021

CORAM

THE HONOURABLE MR. JUSTICE S.M.SUBRAMANIAM W.P.No.9274 of 2014 and M.P.No.1 of 2014 Datacraft India Ltd., Now known as Dimension Data India Ltd., Rep. By its J.Mohanraj Regional Head Oval Building, Nos.10 & 12, Venkat Narayana Road, T.Nagar, Chennai 600 017.

...Petitioner

Vs.

The Assistant Commissioner (CT) Nungambakkam Assessment Circle, No.88, Mayor Ramanathan Salai, Chennai 31.

... Respondent Prayer: Writ Petition filed under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the impugned order of respondent passed in CST No.635502/2003-04 dated 10.03.2014 and to quash the same. For Petitioner : Mr.N.Murali For Respondent : Mr.V.Nanmaran (Government Advocate)

ORDER

The original assessment order passed by the respondent in proceeding dated 10.03.2014 is under challenge in the present Writ Petition. The assessment order was for the Assessment Year 2003-04.

2.The learned counsel for the petitioner made a submission that the issues with reference to the sale of particular goods was already settled and therefore, the tax imposed by the respondent in the assessment order is contrary to the earlier order passed by the appellate authority on the very same subject. Even the High Court also granted the benefit of exemption, in respect of the certain commodities and those

aspects were not taken into consideration by the respondent while passing the assessment order. Therefore, the petitioner has chosen to file the present Writ Petition. 3.The learned counsel for the petitioner made a submission that this Court has passed an order in W.P.No.39115 of 2005, regarding the classification of Routers and the benefit of the said judgment is to be extended to the petitioner also. 4.This Court is of the considered opinion that the said judgment relied on by the petitioner is of the year 2017. The impugned order was passed on 10.03.2014, with reference to the Assessment Year 2003-04. Therefore, the facts and circumstances with reference to the particular Assessment Year is to be considered by the competent authority.

If at all the benefit is to be extended, for such extension, an adjudication of facts are of paramount importance. The High Court cannot conduct a rowing enquiry with reference to the product sold, as well as the disputed facts with reference to the documents and evidences. The appellate authorities are the final fact finding authorities and their findings on facts are of paramount importance for the purpose of exercise of the power of judicial review by the High Court. In the event of adjudication of original issues and the facts in the absence of verification of original records and merely based on the affidavits, there is a possibility of commissions, omissions or errors. Thus, in all circumstances, the aggrieved parties must exhaust the statutory appellate remedy provided.

The importance of the statutory appeals can never be undermined. The legislative intention is to provide an opportunity to the aggrieved person to redress their grievances, more specifically, with reference to the documents and evidences. Thus, the High Court is not expected to venture into the adjudication of factual disputes and only in the event of an order passed by an authority having no jurisdiction, or if an allegation of malafides are raised, the original proceedings may be entertained and in all other circumstances, the aggrieved persons are bound to exhaust the statutory appellate remedy, as contemplated.

5.Preferring an appeal is the rule. Entertaining a Writ Petition before exhausting the appellate remedy is an exception. Undoubtedly, writ proceedings may be entertained before exhausting the appellate remedy. However, it is to be ensured that there is an imminent threat or gross injustice warranting urgent relief to be granted. Mere violation of principles of natural justice is insufficient to entertain a writ proceedings under Article 226 of the Constitution of India, as every Writ Petition is filed based on one or the other ground stating that the principles of natural justice is violated or statutory requirements are not complied with or there is an illegality or

otherwise. Thus, dispensing with an appellate remedy is to be granted cautiously in view of the fact that the very purpose and object of legislation providing an appellate remedy cannot be diluted nor the benefit be denied to the aggrieved person to exhaust the same. The statutory appellate authorities are the final fact finding authorities. Thus, the finding to be made by such appellate authorities with reference to the documents and evidences are of paramount importance for the purpose of exercise of judicial review by the High Court under Article 226 of the Constitution of India.

6.The power of judicial review of the High Court under Article 226 of the Constitution of India is to scrutinize the processes through which a decision is taken by the competent authority by following the procedures as contemplated, but not the decision itself. Therefore, the routine entertainment of a Writ Petition by dispensing with appellate remedy is not preferable and such an exercise would cause injury to the institutional hierarchy and the importance attached to such appellate institutions. The appellate institutions provided under the statute at no circumstances be undermined by the higher Courts. The appellate forums are the final fact finding authorities and more so, possessing expertise in a particular field.

Thus, the finding of such appellate forums would be a valuable assistance for the purpose of exercise of judicial review by the High Court under Article 226 of the Constitution of India. The High Court cannot conduct a roving enquiry with reference to the facts and circumstances based on the documents and evidences. Based on the mere affidavits filed by the litigants, the disputed facts cannot be concluded. Thus, the importance of fact finding by the appellate forums is of more value for the purpose of providing complete justice to the parties approaching the Court of law.

7.The point of delay may be an acceptable ground for the purpose of entertaining a Writ Petition. The practise of filing the Writ Petition without exhausting the statutory remedies are in ascending mode and such Writ Petitions are filed with a view to avoid pre-deposits to be made in statutory appeals and on the ground that the appellate remedies are time consuming. 8.In view of the facts and circumstances, the petitioner is at liberty to file an appeal, before the jurisdictional appellate authority, along with the judgments relied upon and the orders, if any passed by the appellate authority on earlier circumstances, etc., in a prescribed format and by complying with the provisions of the Act, within a period of four weeks from the date of receipt of a copy of this order and if any such

appeal is filed by the petitioner, the same shall be entertained and disposed of by the appellate authority, by affording opportunity to the petitioner, in the manner known to law. With this direction, the Writ Petition stands disposed of. No costs.

Sd/- Assistant Registrar //True Copy// Sub Assistant Registrar gsa To The Assistant Commissioner (CT) Nungambakkam Assessment Circle, No.88, Mayor Ramanathan Salai, Chennai 31.

Copy to The Section Officer, ER Section, High Court, Madras-104.

+1cc to Mr.N.Murali, Advocate Sr.32442 +1cc to the Special Government Pleader Sr.32700 W.P.No.9274 of 2014 pch[co] srg 11/08/2021