2012 (8) TMI 874 - HC - VAT and Sales Tax

Summary

Issues involved:
The judgment deals with the violation of section 67(3) and (4) of the Andhra Pradesh Value Added Tax Act, 2005 in an assessment order dated May 19, 2012 for the tax period April, 2008-March, 2009.

Violation of Section 67(3) and (4) of the Act:
The petitioner, a registered dealer, challenged the assessment order on the grounds of non-compliance with section 67(3) and (4) of the Act. The petitioner claimed exemption for certain products under entry 26 of the First Schedule to the Act. The petitioner sought an advance ruling from the second respondent regarding the classification of specific products, but the ruling was not provided within the stipulated time. Despite this, the first respondent issued a show-cause notice proposing to collect an under-declared tax amount. The petitioner received the ruling from the second respondent after the initiation of assessment proceedings by the first respondent. The court held that the assessment order was in violation of section 67(3) of the Act, and thus, quashed the order while allowing the first respondent to initiate fresh assessment proceedings in compliance with the law.

Conclusion:
The High Court of Andhra Pradesh, in the judgment, quashed the assessment order dated May 19, 2012 passed by the first respondent due to the violation of section 67(3) of the Andhra Pradesh Value Added Tax Act, 2005. The court emphasized the importance of adherence to legal provisions in assessment proceedings and allowed the first respondent to conduct fresh assessment in accordance with the law.