U.MANIKANDAN Vs. ASSISTANT COMMISSIONER OF STATE TAX

JUDGEMENT

(1.) The appeal is from the judgment of a learned Single Judge relegating the petitioner-appellant to the appellate remedy as available under the Kerala Value Added Tax Act, 2003 (for brevity "KVAT Act").

(2.) The question raised against the consideration of the issue on merits, by the learned Senior Government Pleader is the advisability of this Court's interference in the assessment proceedings under Article 226 of the Constitution of India, especially when the learned Single Judge has refused to exercise jurisdiction. This Court, will not, in appeal supplant a reasonable order of the learned Single Judge, merely for reason of it being more reasonable. The learned Senior Government Pleader would strenuously urge on the basis of the decision reported in Titaghur Paper Mills Co.Limited v.State of Orissa and others, 1983 2 SCC 433 that as long as the assessment is properly made, the nitty-gritty of what has been taxed has to be properly relegated to the statutory authorities who are the fact finding authorities. There is no question of invocation of Article 226 unless the provision under which the proceedings are taken is challenged as ultra vires.

(3.) The learned Government Pleader fairly pointed out that Titaghur Paper Mills (supra) is a decision of a three Judge Bench of the Hon'ble Supreme Court and a co-ordinate Bench in [State of H.P v. Gujarat Ambuja Cement Ltd., 2005 6 SCC 499] formulated certain principles permitting invocation of Article 226 even in instances where the proceedings itself are an abuse of process of law. According to the learned Government Pleader, when there are two co-ordinate Benches on the same issue, the decision first in time has to be followed by the High Court as has been held in National Insurance Co. Ltd. v. Pranay Sethi, 2017 16 SCC 680. The learned Government Pleader also relied on the decisions of the Hon'ble Supreme Court in Thansingh Nathmal v. Superintendent of Taxes, 1964 AIR(SC) 1419 and Commissioner of Income Tax v. Chhabil Dass Agarwal, 2014 1 SCC 603 to restrain this Court from interfering with the assessment order.