Tvl.Gowtham Crackers vs. The Deputy Commercial Tax

Held

The Court held that Tamil Nadu Act 27 of 2011 is retrospective in its application. This finding was based on the consensus among the learned counsel and, crucially, on a prior judgment of a learned Single Judge of the same High Court in Tvl. Shanmugamari Timbers vs. Commercial Tax Officer, dated 20.12.2018. That judgment, in turn, relied on the principles of retrospectivity discussed by the Supreme Court in Commissioner of Income Tax (Central) – I, New Delhi vs. Vatika Township Private Limited. The revenue's counsel conceded that the prior judgment had attained finality. Consequently, the orders impugned in the writ petitions were set aside. The Court allowed the writ petitions and directed that no costs be imposed. The operative direction was to set aside the impugned orders.

Facts

The petitioners, Tvl.Gowtham Crackers, D.A. Medicals, and M/s. Rajam Stores, filed writ petitions challenging orders passed by various tax authorities. In W.P.(MD)No.18101 of 2016, the petitioner sought to quash an assessment order for 2014-15 and requested re-assessment under specific sections of the Tamil Nadu Value Added Tax Act, 2006, including claiming Input Tax Credit (ITC). In W.P.(MD)No.5103 of 2012, the petitioner sought to quash an order for 2007-08 and permit claiming ITC under Section 19(1) of the Tamil Nadu Value Added Tax Act, 2006. W.P.(MD)No.12303 of 2010 challenged an order for 2007-08. The common issue across these petitions pertained to the applicability of Tamil Nadu Act 27 of 2011.

Key Issues

1. Whether Tamil Nadu Act 27 of 2011 is applicable only from its notification date of 01.04.2012, or if it applies retrospectively? (Question of law) Petitioner's Contention: The petitioners argued that the amendment brought by Tamil Nadu Act 27 of 2011 should be treated retrospectively. They relied on the judgment of the Constitutional Bench of the Supreme Court in Commissioner of Income Tax (Central) – I, New Delhi vs. Vatika Township Private Limited (2015 1 SCC 1), which discussed principles governing the retrospectivity of provisions. Revenue's Contention: The Government Pleader fairly confirmed that an identical question had been considered by a learned Single Judge of the High Court in Tvl. Shanmugamari Timbers vs. Commercial Tax Officer (W.P.(MD)No.3744 of 2015, dated 20.12.2018) and held in favour of the assessee. The Government Pleader also confirmed that this decision had attained finality.