Madras High Court
M/S.A.R.S.Metals (P) Limited vs The Additional Commissioner(Ct) on 20 January, 2021
W.A.No.20 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 20.01.2021
CORAM :
The Honourable Mr.Justice T.S.SIVAGNANAM
and
The Honourable Ms.Justice R.N.MANJULA
W.A.No.20 of 2021
and
C.M.P.No.247 of 2021
M/s.A.R.S.Metals (P) Limited,
Now Known as A.R.S.Energy Pvt Ltd.,
Represented by its Deputy Director,
D-109, II Floor,
LBR Complex, Anna Nagar East,
Chennai - 600 102. ...Appellant
Vs
1. The Additional Commissioner(CT),
Office of the Principal Secretary/
Commissioner of Commercial Taxes,
Chennai.
2. The Deputy Commissioner(CT),
Now re designated as Joint
Commissioner(CT),
Chennai (South) Division,
PAPJM Building, Greams Road,
Chennai - 600 006.
1/8
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W.A.No.20 of 2021
3. The Commercial Tax Officer,
Now re designated as Assistant
Commissioner(CT),
Koyembedu Asst Circle,
Chennai. ...Respondents
PRAYER: Writ Appeal filed under Clause 15 of Letters Patent to set aside
the order dated 26.11.2019 made in W.P.No.25368 of 2011 on the file of this
Court.
For Appellant: Mr.P.Rajkumar
For Respondents: Mr.Md.Shaffiq
Special Government Pleader
JUDGMENT
(Delivered by T.S.Sivagnanam,J)
We have heard Mr.P.Rajkumar, learned counsel for the appellant
and Mr.Mohammed Shaffiq, learned Special Government Pleader appearing
on behalf of the respondents.
2. This appeal by the writ petitioner is directed against the order
dated 26.11.2019 in W.P.No.25368 of 2011. The said writ petition was filed
by the appellant challenging the order passed by the first respondent, who is
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W.A.No.20 of 2021
the revisional authority under the provisions of the Tamil Nadu General
Sales Tax Act, 1959 (hereinafter referred as TNGST Act).
3. The issue involved in the instant case is with regard to the date
from which the appellant is liable to pay interest for violation of the terms
and conditions of the agreement entered into between the appellant and the
respondent/Department with regard to payment of deferred sales tax.
4. The appellant's case before the learned Writ Court was based
upon the decision of the Hon'ble First Bench in the case of M/s.Amudha
Mills Private Limited Vs. Assistant Commissioner (CT) and 2 others in
W.A.No.1482 of 2006 decided on 06.12.2006. By referring to the said
decision, the appellant contended before the learned Writ Court that they
cannot be made liable to pay deferred interest from the date of stoppage of
production. The learned counsel appearing for the appellant has reiterated
the submissions before the Writ Court and also referred to the decision in
the case of Sri Krishna Smelters Ltd. Vs. Joint Commissioner (CT), Salem
and another in W.P.Nos.23956 to 23958 of 2017 dated 06.09.2017, which
was allowed following the decision in M/s.Amudha Mills Private Limited.
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W.A.No.20 of 2021
The learned Single Bench by the impugned order has dismissed the writ
petition, confirming the order passed by the first respondent.
5. After elaborately hearing the learned counsel for the appellant
and the learned Special Government Pleader, we are of the considered view
that the first respondent, namely the revisional authority, has rightly taken
note of the legal position and interfered with the order passed by the
Assessing Officer levying interest from the date of closure of the appellant's
industry and held that they will be liable for payment of interest only from
26.09.2000. This finding has been rendered by the first respondent in the
order dated 30.05.2011, after taking note of the decision in the case of
M/s.Amudha Mills Private Limited. Thus, it appears that the submission
before the learned Writ Court was that the levy of interest was from 1998-99
when the appellant stopped production. However, facts clearly show that
such order passed by the Assessing Officer has been interfered by the
revisional authority, rightly, applying the decision in M/s.Amudha Mills
Private Limited. Further, in the penultimate paragraph, the revisional
authority has remanded the matter to the assessing authority to compute the
correct number of days delayed and rework the quantum of interest.
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W.A.No.20 of 2021
6. In our considered view, there appears to be no error in the order
passed by the first respondent and therefore, no grounds have been made to
interfere with the said order. Consequently, we find that there is no reasoned
order passed in the writ petition impugned before us, though not for the
reasons assigned therein but for the reasons stated above. Considering the
industry has been closed for several years and the matter has been lingering
before various forums from the year 2000, we are inclined to issue
appropriate directions to the Assessing Officer to issue the computation as
directed by the Additional Commissioner in his order dated 30.05.2011.
7. The learned counsel for the appellant submitted that liberty may
be granted to the appellant to file appropriate application before the
Commissioner seeking for waiver as the industry has been closed for almost
a decade. This prayer is independent of the relief sought for in the writ
petition as well as in this appeal. Nevertheless, we will make certain
observations which may enure in favour of the appellant.
8. Thus, for the above reasons, this appeal is dismissed and there
will be a direction to the Assessing Officer to do the computation as directed
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W.A.No.20 of 2021
by the first respondent in his order dated 30.05.2011, within a period of 4
weeks from the date of receipt of a copy of this judgment. We grant liberty
to the appellant to file an appropriate application before the Commissioner
of Commercial Taxes seeking waiver which shall be considered in
accordance with law. No costs. Consequently, connected miscellaneous
petition is closed.
(T.S.S.,J.) (R.N.M.,J.)
20.01.2021
Index: Yes/No
Internet:Yes/No
Speaking Judgment/Non speaking Judgment
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W.A.No.20 of 2021
To
1. The Additional Commissioner(CT),
Office of the Principal Secretary/
Commissioner of Commercial Taxes,
Chennai.
2. The Deputy Commissioner(CT),
Now re designated as Joint
Commissioner(CT),
Chennai (South) Division,
PAPJM Building, Greams Road,
Chennai - 600 006.
3. The Commercial Tax Officer,
Now re designated as Assistant
Commissioner(CT),
Koyembedu Asst Circle,
Chennai.
https://www.mhc.tn.gov.in/judis/
W.A.No.20 of 2021
T.S.SIVAGNANAM,J
AND
R.N.MANJULA,J
hvk
W.A.No.20 of 2021
and
C.M.P.No.247 of 2021
20.01.2021
https://www.mhc.tn.gov.in/judis/
