2013 (4) TMI 124 - HC - VAT and Sales Tax

Sales of Poly Urethane Foam - treated as unclassified item taxable at 14.5% under Entry 69 of Part C of the I Schedule to the TNVAT Act, 2006, as against the payment of 4% tax as per the assessee - Held that - Taking note of the earlier order passed by this Court and also taking note of the fact that the impugned proceedings is only a notice calling for objections, the petitioner is directed to submit objections within 15 days from today and the respondent will consider the objections and pass final orders within four weeks thereafter.

Summary

Issues:
1. Petitioner seeking writ of Certiorarified Mandamus to quash proceedings and direct assessment.
2. Classification of Poly Urethane Foam under TNVAT Act, 2006.
3. Allegation of pending proceedings causing prejudice to petitioner.

Analysis:
1. The petitioner sought a writ of Certiorarified Mandamus to challenge the respondent's proceedings in TIN 33490780672/2012-2013, requesting to quash the proceedings dated 21.12.2012 and direct the respondent to conduct provisional/original assessment for the assessment year 2012-13 in line with previous court directions in W.P.No.16609 of 2009 and W.P.Nos.9059 and 9060 of 2010. The petitioner, a dealer under the respondent, filed monthly returns under the TNVAT Act, 2006. The department proposed to treat Poly Urethane Foam sales as an unclassified item taxable at 14.5% instead of 4%, leading to objections by the petitioner.

2. The primary contention by the petitioner was that a previous court order directed the respondent to pass final orders, which had not been done, causing prejudice due to repeated notices. The court order from 6.12.2010 instructed the respondent to consider objections raised by the petitioners and pass appropriate orders promptly. The petitioner argued that the respondent's delay in finalizing the matter was unfair and prejudicial.

3. The respondent, represented by the Government Advocate, assured the court of complying with a time frame for hearing objections and passing final orders. Considering the previous court order and the nature of the ongoing proceedings as a notice for objections, the court directed the petitioner to submit objections within 15 days. The respondent was instructed to review the objections and issue final orders within four weeks. The Government Advocate was tasked with reporting compliance with this order to the court. The writ petition was disposed of with no costs, and the related motion was closed.

This detailed analysis covers the issues raised in the legal judgment comprehensively, outlining the petitioner's grievances, the respondent's actions, and the court's directives in resolving the matter.