2015 (1) TMI 1312 - HC - VAT and Sales Tax

Validity of assessment order dated 08.12.2014 - the petitioner has got time to file the writ appeal in Form WW till 31st December and before completion of that period the authority has passed the order in October itself - section 63-A of the Tamil Nadu Value Added Tax Act 2006 - Rule 16-A of the Tamil Nadu Value Added Tax Rules 2007 - Held that - A reading of section 63-A of the said Act and Rule 16-A makes it clear that the respondent will have to wait till the expiry of the period. Even though the petitioner has prayed for grant of interim order I find that there is no purpose in keeping the writ petition pending as the petitioner has got time limit till 31st December and his turnover is more than rupees one crore as mentioned in Section 63-A for which time limit has been given upto 31st December in the aforesaid rule. Petition allowed - assessment order not valid - decided in favor of petitioner.

Summary

Issues:
- Timeliness of assessment order vis-a-vis filing of writ appeal in Form WW
- Requirement of audit report submission under section 63-A of the Tamil Nadu Value Added Tax Act, 2006
- Failure to utilize the opportunity for audit leading to adverse order and subsequent writ petition

Analysis:
The petitioner challenged an assessment order dated 08.12.2014, contending that the authority passed the order in October before the deadline for filing a writ appeal in Form WW by 31st December. The petitioner cited section 63-A of the Act and Rule 16-A of the Rules, emphasizing the requirement to submit an audit report within the prescribed period. The petitioner claimed to have submitted objections via courier, which were allegedly ignored by the respondent.

The respondent argued that as per section 63-A, the petitioner should have audited the accounts and submitted the report within the specified timeframe. The respondent asserted that despite being given an opportunity, the petitioner failed to comply and only challenged the order after it turned adverse. After hearing both parties, the court examined section 63-A and Rule 16-A, noting that the respondent must wait until the expiration of the designated period. The court found no reason to delay the writ petition, especially since the petitioner had time until 31st December, in line with the turnover exceeding one crore rupees as per Section 63-A.

Consequently, the court directed the petitioner to appear before the relevant authority on 20th February 2015. The petitioner was granted the opportunity to present submissions verbally and in writing, with the authority instructed to consider these and issue orders based on merits within four weeks. The writ petition was disposed of accordingly, with no costs imposed.