2009 (11) TMI 858 - HC - VAT and Sales Tax

Revision of assessment - Form F accepted - CST Act - TNGST Act - Held that - It is now settled that once form F has been accepted and an assessment has been made on the basis of form F declaration filed by the assessee, revision of assessment cannot be made unless or otherwise the assessing authority has recorded a finding that assessment has been completed by fraud, misrepresentation or collusion - the writ petitions are dismissed.

Summary

Issues:
Challenging orders of Tamil Nadu Sales Tax Appellate Tribunal regarding disallowed exemption on consignment sales and penalty under Central Sales Tax Act.

Analysis:
The writ petitions were filed to challenge the orders passed by the Tamil Nadu Sales Tax Appellate Tribunal regarding the disallowed claim of exemption on consignment sales and the penalty imposed under the Central Sales Tax Act. The assessing officer disallowed the claim of exemption on consignment sales and levied a penalty under the Central Sales Tax Act. The Appellate Assistant Commissioner dismissed the appeal, but the second appeal filed by the assessee was allowed, setting aside the tax levied and the penalty. The Revenue challenged the correctness of this order in the writ petition.

The assessment of the assessee was initially completed by accepting form F furnished by the assessee. However, based on an inspection report by Enforcement Wing Officers, the assessing officer revised the assessment, stating that the particulars in the form F declaration were incorrect and untrue. The Deputy Commercial Tax Officer's order highlighted discrepancies in the form F declaration, leading to the revision of the assessment. The Supreme Court has ruled that once an assessment has been made based on form F and accepted, it cannot be revised unless there is evidence of fraud, misrepresentation, or collusion.

Referring to the Supreme Court judgment in Ashok Leyland Ltd. v. State of Tamil Nadu, the High Court dismissed the writ petitions. The judgment in Ashok Leyland Ltd. case extensively discussed the authority's power to revise assessments based on form F. Since the reason for reopening the assessment did not fall within the criteria of fraud, misrepresentation, or collusion as per the Supreme Court's ruling, the writ petitions were dismissed. No costs were awarded in this matter.