Challenge on Assessment under Central Sales Tax Act: Supreme Court Directs Renault Nissan Automotive India to Pay 10 Crores

The Supreme Court of India in a recent case directed Renault Nissan Automotive India Pvt ltd to Pay 10 Crores to the Sale Tax Department. The Special Leave to Appeal(SLP) arose out of the impugned final judgment and order passed by the High Court of Judicature at Madras where the challenge on assessment under the Central Sales Tax Act, 1956 was decided.

The appellant is a registered dealer on the file of the respondent under the provisions of the Central Sales Tax Act, 1956 (Central Enactment) and the Tamil Nadu Value Added Tax Act, 2006 ( the State Enactment). The appellant has filed the said writ petitions challenging the assessment orders for two assessment years namely 2014-15 and 2015-16 under the Central Enactment.

The assessee had categorically stated that they were not questioning the merits of the assessments, but were only questioning the assessment orders on the grounds of lack of jurisdiction and also on the grounds of violation of the principles of natural justice.

The High Court held that “there is no error in the said impugned common order passed by the learned Single Judge in dismissing the said writ petitions and simultaneously granting liberty to the assessee to file appeals before the First Appellate Authority.”

A two-judge bench of Justice B V Nagarathna And Justice Ujjal Bhuyan held that “there shall be a stay of any coercive action as against the petitioner herein subject to deposit of a further sum of Rs.10,00,00,000/-(Rupees Ten Crores only) by the petitioner with the respondent-Department within four weeks from today.

It is needless to observe that the amount deposited by the petitioner herein is subject to the result of these special leave petitions.”

To Read the full text of the Order CLICK HERE

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