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VAT Audit Case — SLP to
Supreme Court
After a long time, on 28th
March 2008, the Bombay High Court pronounced the decision declaring thereby “in
our opinion, there is no merit in the Petition and consequently rule discharged
in the petition.”
We have no hesitation in
admitting the fact that our non-C.A. members are shocked as well as depressed
because of the judgment, as they were hopeful that High Court would either
strike down the section or interpret the same section allowing them to undertake
‘audit’ in addition to brother Chartered Accountants. We have published the
entire judgment in this Review for the information of all our members.
To decide whether a Special
Leave Petition (SLP) is or is not to be preferred before the Supreme Court of
India, a meeting of the ‘Core Committee’ was convened on 9th April 2008. Members
of this committee are all the Past Presidents, all the members of the present
Managing Committee, the Regional Center Heads & Secretaries and few other
members appointed by the Managing Committee. The members present expressed
different views which in a nutshell are divided in four categories as follows.
(i) As the membership of the
Association comprises of STPs, C.A.s and Advocates, in the interest of
Association, the issue of preferring SLP is acceptable. However, we also suggest
that after filing the SLP, the matter should be put before the General Body for
detailed discussion and for arranging finance for the Apex Court litigation.
(ii) After going through the judgment, we came to the conclusion that the
judgment is a balanced one and we are confident that no purpose would be served
by going to Supreme Court and it would amount to wastage of time and money.
(iii) The main point canvassed
before the High Court was, looking to the entire scheme of the Act, Section 61
is nothing else but compliance with the provisions of the Act and Rules and the
word ‘audit’ is to be interpreted keeping in mind the objective underlying the
Act and in the context of section 63 pertaining to ‘accounts’ as relevant to
MVAT Act, 2002. It is clear from the judgment that the High Court has not
touched upon this important point and, therefore, we should not give up the
matter. As the Supreme Court of India is the final authority in the Country to
lay down the Law of the Land, we must file the SLP.
(iv) The maximum number of
members opined “it is the question of bread and butter for all the non C.A.
members and, therefore, even if there is very marginal merit in the case, we
must move the Supreme Court. Under the circumstance we are not in a mood to
listen to anything other than filing of SLP. One of the important objects of the
Association is to strive for procuring relief and equitable treatment to the
Sales Tax Practitioners. Therefore, the Association must bear the cost initially
from its own fund and later on should work out the modalities for collecting
funds from the members.”
At the end, the members present
by majority decided to recommend to the Managing Committee for filing SLP. On
the same day the meeting of the Managing Committee was held in which it was
unanimously decided to prefer SLP.
Apart from the above, many
members have expressed on telephone their sincere gratitude for the unanimous
decision of the Managing Committee to prefer SLP and have started contributing
funds to the Association. One of the members in her letter addressed to the
President has stated “Hon’ble High Court’s decision is deeply regretted by all
of us, but we all appreciate your sincere efforts and spirit. We all know this
is not the end for true and fair justice. Association will fight with double
strength now. In order to boost up your spirit and also to support economically,
a cheque of Rs.5,000 is enclosed.” Moreover our counterpart, viz. Western
Maharashtra Tax Practitioners’ Association, Pune, has started collection of
funds for this mite of STPAM.
At this crucial time we appeal
to all the members to remain united and trust the Association that their
interests are uppermost in the mind of the Association.
Deepak Bapat
President |
