ADIYAMAN TEXTILES LTD Vs. COMMERCIAL TAX OFFICER KRISHNAGIRI

JUDGEMENT

(1.) These writ petitions came to be posted before this court on being specially ordered by the Hon'ble Chief Justice. The petitioner in all the four writ petitions are one and the same company, i.e., M/s. Adiyaman Textiles Ltd., represented by its Managing Director situated at Kaveripattinam, Krishnagiri District.

(2.) In the first two writ petitions, the challenge is to the assessment orders issued in Form 19 of the Tamil Nadu General Sales Tax Act, dated 31.7.2007 and 29.6.2007 respectively. By the impugned notice, the petitioner company was directed to pay the tax for additional spindles engaged by them while availing the benefit under IFST Scheme. It was for the period from 01.11.1996 to 31.10.2005. When availing the deferral scheme for payment of Sales Tax, the Enforcement Wing of the Commercial Tax Department had inspected the premises and found that they had originally installed 7424 spindles. At the time of inspection it was found that 12216 spindles were in use. The installation of additional number of spindles were not reported. They have also not paid the tax on the value of yarn produced. It is in that view of the matter, rejecting the details furnished by them, the best judgment assessment was made. An additional tax was made together with penalty under Section 22(2) of the TNGST Act. In respect of W.P.No.32128 of 2007, the tax due came around Rs.3,29,537/-. A notice in Form 54 was also issued. Similarly, in W.P.No.32129 of 2007, the tax due was arrived at Rs.2,87,691/-.

(3.) In both orders by the Commercial Tax Officer, Krishnagiri, though it was indicated that a regular appeal lies to the Appellate Assistant Commissioner of Commercial Taxes, Salem, the petitioner has not chosen to avail the same as required under law. Such an appeal has to b filed within 30 days from the date of receipt of the order. But however, the petitioner has chosen to come to this court and file the writ petitions on 03.10.2007. Both writ petitions were admitted on 10.10.2007. Pending writ petitions, in the applications for interim stay, this court had granted an interim stay of the impugned proceedings. On notice from this court, the Assistant Commissioner (Commercial Tax), Krishnagiri has filed a common counter affidavit in both these writ petitions, dated 6.2.2012.