2016 (3) TMI 1150 - HC - VAT and Sales Tax

Validity of reassessment order - failure to consider F and C forms filed belatedly by the petitioner while passing order - Held that - It does appear that the petitioner having filed all the C and F forms, the same having ignored since they were filed belatedly. If the same were taken into account before any further orders would be passed by the authorities the interest of justice would be met - the petition is allowed. The reassessment order passed is quashed. The respondent is directed to consider the C and F forms filed belated by the petitioner before passing any further orders - decided in favor of petitioner.

Summary

Issues:
Reassessment order challenge based on belated filing of C and F forms under Karnataka Value Added Tax Act, 2003.

Detailed Analysis:
The petitioner, a company engaged in the manufacture and distribution of paints, challenged a reassessment order for the period 2014-15 under the Karnataka Value Added Tax Act, 2003. The petitioner had claimed deductions towards sales return in its VAT returns, which were accepted initially. However, the respondent initiated reassessment proceedings after obtaining an assignment note from the Commissioner. The respondent proposed to reject the petitioner's books of accounts due to the absence of C and F declaration forms. The petitioner, upon receiving notice, appeared before the respondent and submitted additional declaration forms, requesting more time to provide the remaining forms. Despite the petitioner's efforts, the respondent proceeded to pass the reassessment order, leading to the petitioner filing a rectification application, which was pending adjudication at the time of the petition. The petitioner contended that if granted sufficient time, all necessary forms could have been produced, and the demand created by the respondent was unjustified. The High Court, upon review, found that the belatedly filed C and F forms were crucial and should have been considered before passing any further orders. Consequently, the court allowed the petition, quashed the reassessment order, and directed the respondent to take into account the belatedly filed forms before proceeding with any future actions. The petitioner was instructed to appear before the authority without further notice, emphasizing the importance of the forms in ensuring justice.

In conclusion, the High Court's judgment focused on the procedural aspect of the reassessment order, highlighting the significance of the belatedly filed C and F forms in the petitioner's case. By setting aside the reassessment order and instructing the respondent to consider these forms before any subsequent actions, the court aimed to uphold the principles of justice and fairness in tax assessment proceedings under the Karnataka Value Added Tax Act, 2003.