2015 (8) TMI 1301 - HC - VAT and Sales Tax

Determination of VAT tax liability - suppression of sale - The petitioner is running a small petty Beeda Stall in the name and style of Central Beeda Stall . - reasonable opportunity of hearing not provided - Held that - Writ Petition is allowed - Demand notices quashed - The petitioner is directed to file his objections to the impugned notices, dated 12.04.2015, within a period of three weeks from the date of receipt of a copy of this order and on receipt of the same, the respondent shall proceed further in the matter, by affording an opportunity to the petitioner and thereafter pass appropriate orders, on merits and in accordance with law, within a period of four weeks, thereafter. Till the orders are passed by the respondent on the said objections, there shall be an order of status-quo as on date, to be maintained by the parties.

Summary

Issues:
Prayer for issuance of Writ of Certiorari to quash impugned proceedings, order, and demand notices related to Value Added Tax assessment for multiple years.

Analysis:
The petitioner, running a Beeda Stall, was assessed for Income Tax and later notified by the respondent to register under the Tamil Nadu Value Added Tax Act, 2006, citing sale suppression based on an inspection. The petitioner requested time to respond to the notices, seeking professional help for a financial matter, but the respondent proceeded to pass the order demanding substantial tax amounts without granting a reasonable opportunity to the petitioner.

The main argument raised was the lack of opportunity provided to the petitioner to effectively respond to the notices despite requests for time and professional assistance. The petitioner's counsel referred to a previous judgment involving a similar situation where the court directed the petitioner to file objections within a specified period and ordered the authorities to proceed accordingly. The counsel sought a similar direction in this case.

Considering the circumstances and the precedent cited, the court allowed the Writ Petition, quashing the impugned proceedings, order, and demand notices. The petitioner was directed to file objections within three weeks, after which the respondent was instructed to afford an opportunity to the petitioner and pass appropriate orders within four weeks. The court ordered a status quo until the respondent's decision and closed the case without imposing any costs.