Filing of Rectification Petition after 5 years from date of Assessment Order without Filing Statutory Appeal: Madras HC confirms Auction Notice [Read Order]

A Single Bench of the Madras High Court confirmed Auction Notice on the ground that the rectification petition was filed after 5 years from date of assessment order without filing statutory appeal.

The petitioner in the present appeal is Poovai Amman Agencies.

The writ petition has been filed challenging the Auction Notice, issued by the State Tax Officer pursuant to the rejection of the Rectification Petitions filed by the petitioner under Section 84(1) of the Tamil Nadu Value Added Tax Act, 2006.

The impugned Auction Notice pertains to the assessment years 2007-08 to 2011-12. As seen from the impugned Auction Notice, the tax and penalty liability of the petitioner is Rupees six crores fifty-four lakhs nineteen thousand seven hundred and twenty only. The properties are brought for auction for non-payment of the said sum by the petitioner.

The Counsel for the petitioner submitted that the petitioner will be put to irreparable loss and hardship as their properties are being brought for sale despite the fact that the imposition of 150% penalty under the assessment orders has been passed arbitrarily and erroneously, which was the subject matter of the Rectification Petitions filed under Section 84(1) of the Tamil Nadu Value Added Tax Act, 2006.

The Counsel for the Petitioner also argued that the Rectification Petitions were not filed immediately after passing of the assessment orders only on the ground that the above writ petitions are filed challenging Section 19(11) of the Tamil Nadu Value Added Tax Act, 2006, which is the provision dealing with reversal of input tax credit.

The Government Advocate appearing for the respondent submitted that the Rectification Petitions under Section 84(1) of the Tamil Nadu Value Added Tax Act, 2006 pertaining to the assessment years 2007-08 to 2011-12 were filed only in the year 2018 though the assessment orders were passed in the year 2013 itself.

The Court of Justice Abdul Quddhose observed that “the petitioner seeking for rectification of the assessment orders cannot be entertained under any circumstances whatsoever. This Court does not find any infirmity in the observation after seeing the conduct of the petitioner, which will reveal that only to protract the inevitable, the Rectification Petitions have been filed.”

“The Court does not find any merit in this writ petition and the consequential Auction Notice, which is impugned in this writ petition also does not deserve any interference by the Court” the Court said

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