Case Law Details
Shyam Textiles Limited Vs Commissioner of Commercial Taxes (Madras High Court)
In the given case the crux of the problem lies in the order passed by the learned Commissioner under Section 28A of the Act, which is as brief and non speaking as it could be. The learned Commissioner, while exercising the powers under Section 28A of the Act, which empowers him to pass a quasi judicial order on any point concerning the rate of tax under the Act and which is a wide and significant quasi-judicial power of Advancing Ruling given to the higher authority of the Commercial Excise Department with a view to remove the difficulties and doubts about the rate of tax, has issued such orders prima facie without application of mind at all.
HC have observed that the said order under Section 28A of the Act is non est and not sustainable on the face of it. Therefore, HC set aside the said order of the learned Commissioner dated 28.03.2009 and remit the matter back to the said Authority and direct the Assessee to appear before the said Authority so that a detailed, proper and well reasoned order can be passed by the learned Commissioner in exercise of his power under Section 28A of the Act.
Under these powers, such non speaking orders result in unnecessary litigation in the Constitutional Courts and there seems to be no check on such casual exercise of powers by the responsible officers of the Commercial Taxes Department. HC only wish to bring it to the notice of the Senior Officers of the Department was that they realise their duty and responsibility in passing appropriate reasoned orders in such cases.
With these observations, HC dispose of these Writ Petitions by relegating the Petitioner/Assessee before the learned Commissioner so that fresh orders are passed under Section 28A of the Act. There shall be no order as to costs.
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