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2017 (8) TMI 1726 - HC - VAT and Sales TaxRevision of assessment and grant of time to the petitioner to file objection - HELD THAT - This Court has repeatedly pointed out that if assessments are sought to be reopened based on the information culled out from the Official Website, the Assessing Officers cannot assess the dealer to tax without conducting an enquiry and in fact elaborate procedure has been suggested in the decision of this Court in M/S. JKM GRAPHICS SOLUTIONS PRIVATE LIMITED VERSUS THE COMMERCIAL TAX OFFICER 2017 (3) TMI 536 - MADRAS HIGH COURT . However, the respondent did not embark upon any such exercise, though he has admitted in the impugned assessment order that mere information on website may not constitute information. Therefore, the impugned order to the said extent proposing to assess the petitioner to higher rate of tax based on information gathered from the department website has to be set aside. The writ petition is partly allowed and the finding rendered by the Assessing Officer on the proposal made in the notice dated 23.05.2017 is set aside and the matter is remanded back to the respondent for fresh consideration, who shall furnish full particulars as sought for by the petitioner, grant 15 days time to submit their objections and after affording an opportunity of personal hearing to the petitioner, redo the assessment to the said extent in accordance with law. Petition allowed in part and part matter on remand.
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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