The Madras High Court ruled that the question of whether transactions constitute works contracts or sales cannot be undertaken in writ jurisdiction and thereby relegated the matter to the Appellate Authority.
The petitioner, M/s Orchid Designs Pvt Ltd, stated that a writ appeal has been filed as against order dated 07.08.2020 as against which the present review petition has been filed. In the course of oral hearing, the counsel reiterated the stand already noted and dealt with under order on the applicability of majority judgment in the case of Kone Elevator Pvt Ltd vs State of Tamil Nadu.
C.BakthaSiromoni, counsel for the petitioner referred to the judgment of the Apex Court in the case of Filterco and another v Commissioner of Sales Tax, MP and other, and the argument of the petitioner is that there is a Circular of the Commissioner, Commercial Taxes Department, which is in favour of the petitioner and in light of the said circular, the matter ought not to have relegated to appeal.
The Court of Justice AnithaSumant observed that “After having considered all the points, I had relegated the petitioner to the appellate authority since the question of whether the transactions in issue constitute works contracts or sales would involve an examination of the contracts as well as various other factual particulars and such an exercise cannot be undertaken in writ jurisdiction.In the present case, the petitioner has been relegated to appeal which means that the matter will be heard by the appellate authority.”
The Bench further went on to state that “Reliance on the aforesaid judgment is misconceived for the reason that, in that judgment, the proposition laid down was that a Circular issued by a superior authority would bind an assessing officer and, in such circumstances, there is no point in remanding the matter to the file of the assessing authority to be redone.”
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