2003 (12) TMI 603 - AT - VAT and Sales Tax

Summary

Issues:
Prayer to set aside the original order of assessment with direction to grant further opportunity to file objection regarding sales of different commodity on disputed transaction.

Analysis:
The petitioner, a dealer in RBD palmolein oil and an assessee, challenged the assessment proposing to tax the sale value of 29 old tanker lorries at 12 per cent as first sales within Tamil Nadu. The petitioner failed to file objections within the stipulated time after receiving the notice, leading to the respondent concluding that the sales of tanker lorries were first sales within the state, subject to tax at 12 per cent. The respondent determined that the tanker lorries were different commodities from the chassis purchased, as evidenced by the purchase and sale invoices provided. The respondent justified the tax levy based on the nature of the sold items and the absence of proof of tax sufferance on the tanker lorries. The petitioner contended that the respondent did not apply his mind and violated natural justice principles by not explicitly stating the different commodity in the notice. However, the tribunal found no violation of natural justice or lack of application of mind by the respondent in arriving at the tax determination. Consequently, the tribunal dismissed the original petition and the miscellaneous petition for stay, upholding the impugned order.

In conclusion, the tribunal upheld the respondent's tax assessment decision, emphasizing the importance of timely objections and the relevance of the nature of the sold items in determining tax liability. The tribunal found no grounds to interfere with the impugned order, citing the petitioner's failure to raise objections in a timely manner as a key factor in the decision. The tribunal's ruling underscores the significance of adherence to procedural requirements and the need for clear and timely communication between parties in tax assessment proceedings.