The Madras High Court dismissed five writ petitions filed by spinning mills challenging tax orders and exemption denials. Relying on M/s. Aakavi Spinning Mills, the Court held that the legal issue was squarely covered by a prior batch order dated 13.12.2017 and dismissed all petitions with no costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 19.01.2018
CORAM
THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM
W.P.Nos.6085 & 6086 of 2014 and 22430 of 2017 and 24796 & 24797 of 2017 and 25021 of 2017
W.P.Nos.6085 & 6086 of 2014
Tvl.Rajadheepam Spinning Mills (P) Ltd., rep. by its Managing Director, Mr.M.Saravana, S.F.No.161/2, Vellapparai Pudhur, Kattipalayam, Kalaiyanur Village (PO), Pallipalayam-638 008, Thiruchengode, Namakkal District. ... Petitioner Vs. 1.The Authority for Clarification and Advance Ruling, (U/s.48-A of the TNVAT Act, 2006), Office of the Principal Commissioner and Commissioner of Commercial Taxes, 2nd Floor, Chepauk, Chennai-600 005.
2.The Assistant Commissioner (CT), Tiruchengode (Rural) Assessment Circle, Tiruchengode, Namakkal District. ... Respondents
Prayer in W.P.No.6085 of 2014 : Petition filed under Article 226 of the Constitution of India praying for issuance of Writ of Certiorari calling for the records on the files of the first respondent in A.C.A.A.R.22/12-13 dated 14.02.2013 and quash the same as being contrary to the principles of natural justice and that of the principle laid down by this Hon'ble Court in the judgment reported in (2007) 295 ITR 303 (Mad) (V.Selladurai vs. Chief Commissioner of Income-Tax (OSD) and another) and the principle laid down by this Hon'ble Court in the judgment reported in (2013) 60 VST 530 (Mad) (Sukhi Iron & Steel Company vs. Assistant Commissioner (CT), Thiruvanmiyur Assessment Circle, Chennai).
Prayer in W.P.No.6086 of 2014 : Petition filed under Article 226 of the Constitution of India praying for issuance of Writ of Certiorari, calling for the records on the files of the second respondent in TIN.33613203763/2011-12 dated 27.11.2013 and quash the same as being without jurisdiction and authority of law.
W.P.No.22430 of 2017
M/s.Prince Yarnn India Limited, rep. by its Director, S.Thangaraj, No.468, Pallikattur Street, Vediyarasampalayam, Pallaipalayam Agraharam P.O., Erode-638 008, Erode District. ... Petitioner Vs.
1.The Authority for Clarification and Advance Ruling, rep. by its Commissioner of Commercial Taxes, Ezhilagam, Chepauk, Chennai-600 005. 2.The Assistant Commissioner (CT), Tiruchengode (Rural) Assessment Circle, Tiruchengode, Namakkal District. ... Respondents
Prayer in W.P.No.22430 of 2017 : Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorari, calling for the records on the file of the first respondent in its impugned proceeding made in review of ACAAR No.22/2012-13 (Acts Cell-II/18794/2016) dated 29.06.2017, quash the same.
W.P.Nos.24796 & 24797 of 2017
M/s.Rajadheepam Spinning Mills Pvt. Ltd., rep. by its Managing Director, Mr.M.Saravana, S.F.No.161/2, Vellapparai Pudhur, Kattipalayam, Kalaiyanur Village (PO), Pallipalayam-638 008, Thiruchengode, Namakkal District. ... Petitioner
Vs.
Prayer in W.P.No.24796 of 2017 : Petition filed under Article 226 of the Constitution of India for issuance of Writ of
Certiorari, calling for the records relating to the preassessment notice of the first respondent dated 30.06.2017 issued to the petitioner in S.T.33803205065/2015-16, in so far as it deals with claim of exemption to Hank Yarn and quash the same.
Prayer in W.P.No.24797 of 2017 : Petition filed under Article 226 of the Constitution of India for issuance of Writ of Certiorarified Mandamus, calling for the records relating to the order passed by the second respondent dated 29.06.2017 in Review of ACAAR No.22/2012-13 quash the same and consequently forbear the first respondent from levying tax on Hank Yarn (VSF Hank Yarn).
W.P.No.25021 of 2017
M/s.Victory Spinning Mills Limited, rep. by its Director, T.Balachander, Uppupalayam, Modamangalam (PO), Tiruchengode-637 304, Namakkal District. ... Petitioner Vs. 1.The Authority for Clarification and Advance Ruling, rep. by its Commissioner of Commercial Taxes, Ezhilagam, Chepauk, Chennai-600 005. 2.The Assistant Commissioner (CT) (FAC), Tiruchengode Rural Circle, Tiruchengode, Namakkal District. ... Respondents
Prayer in W.P.No.25021 of 2017 : Petition filed under Article 226 of the Constitution of India praying for issuance of Writ of Certiorari, calling for the records on the file of the first respondent in its impugned proceeding made in Review of ACAAR No.22/2012-13 (Acts Cell-II/18794/2016) dated 29.06.2017 quash the same.
For Petitioner in W.P.Nos. 6085 & 6086/2014 :Mr.R.Senniappan
For Petitioner in W.P.Nos. 22430 & 25021/2017 :Mrs.R.Hemalatha
For Petition in W.P.Nos. 24796 & 24797/2017 :Mr.Niranjan Rajagopalan for M/s.G.R.Associates
For Respondents :Mrs.G.Dhana Madhri, (in all W.Ps.) Government Advocate
: and Mr.M.Hariharan Addl. Govt. Pleader
C O M M O N O R D E R
It is not disputed by the learned counsel on either side
that the legal issue involved in these writ petitions is
squarely covered by the decision of this Court in the case of
M/s.Aakavi Spinning Mills Pvt. Ltd. v. The Authority for
Clarification and Advance Ruling and another in W.P.Nos.17722 of
2017 etc., batch dated 13.12.2017.
2.Following the order passed by this Court, these writ
petitions are dismissed. No costs.
s/d-
Assistant Registrar(CS IX)
True Copy
Sub-Assistant Registrar
abr
To
1. The Commissioner of Commercial Taxes,
The Authority for Clarification and
Advance Ruling,
2 nd Floor, Chepauk, Chennai-600 005.
2. The Assistant Commissioner (CT),
Tiruchengode (Rural) Assessment Circle,
Tiruchengode, Namakkal District.
+2 Ccs to M/s.G.R. Associates, sr 4789.
+2 Ccs to Ms.R. Hemalatha, Advocate sr 4465 & 4464.
+1 CC to Mr.R.Senniappan, Advocate sr 4481.
+1 CC to Govt. Pleader sr 4938.
W.P.Nos.6085 & 6086 of 2014 and 22430 of 2017 and 24796 & 24797 of 2017 and 25021 of 2017
PVS(CO) SP(06/02/2018)
2 issues framed by the court
Whether the statutory bar under the Tamil Nadu VAT Act prevents the High Court from adjudicating issues of initial determination of tax liability.
Whether Article 226 writ petitions regarding exemption claims for Hank Yarn can be entertained given the existence of an Advance Ruling Authority.
Colour shows how this judgement treated each authority
V.Selladurai vs. Chief Commissioner of Income-Tax (OSD)Referred¶9
(2007) 295 ITR 303 (Mad)
Sukhi Iron & Steel Company vs. Assistant Commissioner (CT)Referred¶9
(2013) 60 VST 530 (Mad)
M/s.Aakavi Spinning Mills Pvt. Ltd.Applied¶35
M/s.Aakavi Spinning Mills Pvt. Ltd. v. The Authority for Clarification and Advance Ruling
Tvl.Rajadheepam Spinning Mills (P) Ltd.
M/s.Prince Yarnn India Limited
M/s.Rajadheepam Spinning Mills Pvt. Ltd.
M/s.Victory Spinning Mills Limited
The Authority for Clarification and Advance Ruling
The Assistant Commissioner (CT)
T.S.Sivagnanam
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
