THE HON'BLE MR.JUSTICE S.MANIKUMAR
AND
THE HON'BLE MR.JUSTICE R.SURESH KUMAR
Tax Case (Revision) SR.No.45987 of 2006 and MP No.1 of 2013 The State of Tamil Nadu rep. By The Deputy Commissioner (CT), Trichy Division, Trichy ... Petitioner ..Vs..
Tvl.Kannamba Agency, 45, Pudukkottai Road, Aranthangi ... Respondent Tax Case Revision filed under Section 38 of the TNGST Act, 1959 against the order of the Tamil Nadu Sales Tax Appellate Tribunal (Additional Bench), Chennai dated 30th November 2010 and passed in TA No.197/07.
For petitioner : Mr.K.Venkatesh, Government Advocate ORDER (Order of the Court was made by S.MANIKUMAR, J) http://www.judis.nic.in Batta has been filed on 17.11.2017 and for want of fresh hearing date, Registry has listed M.P.No.1 of 2013 in TC Sr.No.45987 of 2006.
2. However, Mr.K.Venkatesh, learned Government Advocate submitted that Government have issued orders in G.O.(Ms)No.10 Commercial Taxes and Registration (D1) Department dated 25.01.2016, that wherever the monetary involvement of tax is less than Rs.2 Lakhs, there is no need to pursue further and that appeals / revisions can be withdrawn. Government order is extracted hereunder.
ABSTRACT Announcement - Commercial Taxes Department - Defining of Litigation Policy for Commercial Taxes Department - Orders - Issued.
Commercial Taxes and Registration (D1) Department G.O.(Ms) No.10 Dated: 25.01.2016 kd;kj. ij?11 jpUts;Stu; Mz;L 2047/ Read:
Principal Secretary / Commissioner of Commercial Taxes, Lette No.
Acts Cell BB1/17991/2013, dated 12.11.2015 and 19.01.2016 ----
ORDER:-
While moving the Demand for grants relating to Commercial Taxes for the year 2015-16 on the floor of the Legislative Assembly on 21.9.2015 the Hon'ble Minister (Commercial Taxes and Registration) has made the following announcement:-
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2. In accordance with the above announcement, the Principal Secretary / Commissioner of Commercial Taxes in his letter read above has sent proposal to define the Tax Litigation Policy for Commercial Taxes to avoid frivolous appeals by the State in all appellate forums and requested the Government to issue suitable orders.
3. The Government after careful examination of the proposal of the Principal Secretary / Commissioner of Commercial Taxes hereby order to define the Tax Litigation Policy for Commercial Taxes Department to avoid frivolous appeals by the State in all appellate forums as follows with a direction to follow the guidelines scrupulously: -
TAX LITIGATING POLICY OBJECTIVES
(a) Avoid litigation in cases where revenue impact is less than the cost of Litigation.
(b) Prevent wastage of Court time in low revenue cases.
(c) Enable limited manpower of this Department to focus its energies and full attention to large revenue cases.
CONDITIONS The salient features leading towards the Litigation Policy and its relative conditions on which the same shall be formulated are as follows:-
➢ A monetary limit for further agitation of cases shall be formulated which shall include tax, penalty and interest involved in the dispute in the proceedings under consideration. The assessing authority shall also certify while sending proposals for not pursuing further appeal to competent authority that the revenue involved in the issue for that dealer for the whole assessment year does not exceed the monetary limit so fixed by Government.
➢ An appeal need not necessarily be filed if the tax effect exceeded the proposed fixation of monetary limit unless there are clear grounds for such appeals to succeed. Filing of appeal in such cases is to be decided on merits of the case and on settled principles of law.
➢ Adverse appeal orders relating to the following should be contested irrespective of the amount involved.
a) Where the constitutional validity of the provisions of an Act or Rule is under challenge.
b) Where notification / instruction / order or circular has been held illegal or ultra-vires.
c) Where audit objection on the issue involved in a case has been accepted by the Department.
➢ Wherever it is decided not to file appeal in pursuance of these instructions, which are aimed solely at reducing Government Litigation, such cases shall not have any precedent value. In such cases, the authority reviewing the appeal order should specifically record that 'even though the decision is not acceptable, appeal is not being filed as the amount involved is less than the monetary limit prescribed by the Government'. Further, in such cases, there will be no presumption that the Department has acquiesced in the decision on the disputed issues in the case of same assessee or in case of any other assessee, if the amount involved exceeds the monetary limits. Thus, in case any prior order is being cited on facts and law, it must be checked whether such orders were accepted only on account of the monetary limit before following them in the name of judicial discipline.
➢ In respect of orders, where it is decided not to file appeal in pursuance of these instructions, a data base needs to be created so that the Government and Principal Secretary / Commissioner of Commercial Taxes are made aware of the orders that are accepted herein and which should not be taken as having precedent value. The details of such orders in respect of Appellate Deputy Commissioner and Appellate Joint Commissioner are required to be furnished by the Territorial Joint Commissioners in Annexure-1 (Part A and B) appended to this order, which should form part of the Monthly Statistics. The details of such orders in respect of Tamil Nadu Sales Tax Appellate Tribunal and High Court are required to be furnished by the Principal Secretary / Commissioner of Commercial Taxes to the Government in Annexure II (Part A and B) appended to this order.
FEATURES Subject to the above conditions, the features of Litigation Policy are as follows:-
(i) Hereafter, the appeals under Tamil Nadu Value Added Tax Act, 2006 shall not be filed by the Commercial Taxes Department or taken on Suo Motu Revision in cases where the tax effect does not exceed the monetary limits given hereunder:-
ii) However, there will be mo monetary lower limit for nay case where the dealer files appeal at any level. Such cases shall be contested by the Department.
http://www.judis.nic.in
4. This order issues with the concurrence of Finance Department U.O.No.279/FS/P/2016 dated 22.01.2016.
(By Order of the Governor) MD.NASIMUDDIN PRINCIPAL SECRETARY TO GOVERNMENT (FAC)
3. Recording the submission of the learned Government Advocate and G.O.(Ms)No.10 Commercial Taxes and Registration (D1) Department dated 25.01.2016, Tax Case (Revision) in T.C.Sr.No.45987 of 2006 is dismissed at the SR stage itself. Consequently, connected M.P.No.1 of 2013, is also dismissed.
(S.M.K., J.) (R.S.K., J.) 22.11.2017
Index: Yes. Internet: Yes Speaking/Non speaking ars S.MANIKUMAR, J.
AND R.SURESH KUMAR, J.
ars (TC SR.No.45289 of 2011 S.MANIKUMAR, J.
AND R.SURESH KUMAR, J.
Tax Case (R) SR.No.45987 of 2006 and MP No.1 of 2013