MILLENNIUM MOTORS Vs. COMMERCIAL TAX OFFICER AND ANR.

JUDGEMENT

(1.) THE prayer in these writ petitions is to quash the impugned proceedings dated April 20, 2008 and January 9, 2008 passed for the assessment years 2002 -03, 2003 -04, 2004 -05, 2005 -06 and 2006 -07, respectively.

(2.) THE Petitioner in these cases is the authorised selling agent for SKODA motor cars and it is registered as a dealer on the file of the first Respondent under the Tamil Nadu General Sales Tax Act, 1959 and under the Tamil Nadu Tax on Entry of Motor Vehicles into Local Areas Act, 1990. The Petitioner being an importer of motor vehicles from other States, is liable to pay entry tax under Section 3 of the Entry Tax Act on the entry of the motor vehicles into the State of Tamil Nadu. As per Section 4(1) of the Entry Tax Act, the importer on the sale of such motor vehicles is entitled to reduction of tax liability under the Tamil Nadu General Sales Tax Act, 1959, and Tamil Nadu Additional Sales Tax Act, 1970, to the extent of entry tax paid. From November 1, 2001 every dealer was liable to pay additional sales tax under the Tamil Nadu Additional Sales Tax Act, when the taxable turnover under the Tamil Nadu General Sales Tax Act exceeds Rs. 10 crores. According to the Petitioner, for the assessment years 2002 -03, 2003 -04 and 2004 -05, the Petitioner duly reported their sales in the monthly returns and claimed set -off of the entry tax paid towards sales tax payable. Insofar as the additional sales tax was concerned, on the turnover crossing the taxable limit of Rs. 10 crores, the excess entry tax available after adjusting the sales tax due were adjusted towards the additional sales tax. According to the Petitioner, the Respondent is yet to complete the assessment of the Petitioner for the years 2002 -03, 2003 -04, 2004 -05 under the Tamil Nadu General Sales Tax Act. The Respondent issued proceedings dated April 20, 2008 and stated that the Petitioner has paid additional sales tax dues belatedly during the years 2002 -03, 2003 -04, 2004 -05 which attracts levy of penal interest under Section 2(1)(aaa) of the Tamil Nadu Additional Sales Tax Act. In the said proceedings a demand for penal interest for the above periods was made without even issuing a show -cause notice.

(3.) THE Respondent has filed counter -affidavit stating that the Petitioner has not paid additional sales tax due on the dates along with monthly returns filed for every month and they have paid additional sales tax belatedly and therefore interest was levied under Section 24(3) of the Tamil Nadu General Sales Tax Act, 1959, read with Section 2(1) (aaa) of the Tamil Nadu Additional Sales Tax Act, 1970, for each of the assessment years separately. As against the said orders, if the Petitioner is aggrieved, it can prefer revision petitions before the Deputy Commissioner under Section 33 of the Act and if the Petitioner is still aggrieved, it can file second revision before the Joint Commissioner under Section 35 of the Act and the writ petitions filed, straight away without availing of the alternate remedy, are not maintainable.