2010 (1) TMI 1130 - HC - VAT and Sales Tax

Summary

Issues: Impugned assessment order against circular; Timelines for submission of documents not followed; Order based on short notice period; Exemption claims not supported by documents; Setting aside of assessment order with directions to follow circular.

In this case, the High Court of Madras considered an appeal against an assessment order dated December 24, 2009, challenged on the grounds of non-compliance with a circular issued by the Commissioner of Commercial Taxes. The circular, dated December 27, 2006, provided specific instructions for assessment procedures, including the requirement to issue notices allowing 90 days for submission of documents before passing assessment orders. However, the respondent in this case issued a notice on December 21, 2009, allowing only three days for submission of documents, leading to the subsequent assessment order on April 22, 2009. The assessment order highlighted various turnover amounts without supporting documentation, resulting in a challenge to the validity of the assessment process. The court observed that the assessment order was solely based on the short notice period provided by the respondent, contrary to the circular's guidelines. Consequently, the court set aside the assessment order dated December 24, 2009, granting liberty to the respondent to re-assess the case following the circular's directives. The court emphasized the need for the petitioner to utilize the opportunity to submit all necessary records and objections as per the circular, ensuring a fair and lawful assessment process. The writ petition was allowed with specific directions, and the connected miscellaneous petition was closed without costs.