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2017 (8) TMI 1726 - HC - VAT and Sales Tax


Issues:
1. Validity of the proposal in the notice dated 23.05.2017 based on further omission.
2. Adequacy of the assessment procedure followed by the respondent.
3. Compliance with legal requirements in assessing the dealer to tax based on information from the Official Website.

Analysis:
1. The petitioner, a registered dealer under the TNVAT Act, challenged a proposal in a notice dated 23.05.2017 regarding a further omission detected on the Department Website. The petitioner requested copies of relevant reports but the respondent completed the assessment without considering the petitioner's objections or proofs. The court emphasized the necessity of conducting an inquiry before reassessing based on website information, citing the case of JKM Graphics Solutions Private Limited Vs. CTO, Vepery Assessment Circle. The court set aside the proposal in the notice and remanded the matter for fresh consideration, directing the respondent to provide necessary particulars, grant time for objections, and conduct a proper assessment procedure.

2. The assessment for the year 2010-2011 was initially deemed completed under Section 22(2) of the TNVAT Act. Subsequently, the respondent issued a notice proposing a revision, which led to the petitioner filing a writ petition challenging the revised assessment order. An appeal was made before the Appellate Deputy Commissioner, who partially allowed the appeal and remanded certain issues for reconsideration. The court noted that the respondent failed to follow the elaborate procedure suggested in previous judgments when reassessing based on website information. The court set aside the impugned order proposing a higher tax rate and instructed the respondent to redo the assessment in compliance with the law.

3. The court highlighted the importance of conducting a proper inquiry before assessing a dealer to tax based solely on information from the Department Website. The respondent did not undertake such an inquiry despite acknowledging that website information alone may not constitute valid grounds for assessment. The court directed the respondent to set aside the proposal based on website data, provide necessary information to the petitioner, allow time for objections, and conduct a fresh assessment after affording the petitioner a personal hearing. The court's decision emphasized the need for procedural compliance and fair assessment practices in tax matters.

 

 

 

 

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