2015 (3) TMI 698 - HC - VAT and Sales Tax

Reassessment - Returns, trading and profit and loss account and audited balance sheet not filed - Proposal confirmed filing objections - Held that - Though the petitioner has been served with the pre-revision notice and they had received the same and sought for time for filing their objections, they did not file their objections and therefore, the proposal in the notice was confirmed. In the light of the stand taken by the petitioner by relying upon Section 87-A of TNVAT Act, this Court is of the view that the petitioner should be granted an opportunity to submit their objections. - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
1. Quashing of assessment order under TNGST Act and seeking fresh assessment under TNVAT Act.
2. Failure to file returns and objections leading to confirmation of proposal.
3. Interpretation of Section 87-A of TNVAT Act regarding assessment on best judgment.
4. Granting opportunity to submit objections and remanding the matter for fresh consideration.

Analysis:
1. The petitioner, a registered dealer under the TNGST Act and TNVAT Act, sought a writ to quash the assessment order for 2006-07 under TNGST Act and requested a fresh assessment under TNVAT Act. The petitioner, trading in packaged drinking water, reported turnovers but failed to file returns and necessary documents, leading to a notice for revision of assessment.

2. Despite receiving the pre-revision notice and requesting time to file objections, the petitioner did not submit any objections, resulting in the confirmation of the proposal. The petitioner argued that post the insertion of Section 87-A of TNVAT Act, they should not have been assessed on best judgment, and there was no basis for enhancing the taxable turnover.

3. The Court noted that the petitioner's reliance on Section 87-A of TNVAT Act warranted an opportunity to submit objections. Emphasizing the importance of allowing the petitioner to present their objections, the Court decided to quash the impugned proceedings and remand the matter to the respondent for fresh consideration.

4. The Court directed the petitioner to submit objections within two weeks, including contentions related to Section 87-A, after which the respondent was instructed to provide a personal hearing and pass reasoned orders within three weeks. The judgment highlighted the need for a fair opportunity for the petitioner to present their case and for the assessment to be conducted in accordance with the law.

In conclusion, the judgment granted the petitioner the chance to challenge the assessment order by submitting objections and ensured a fair process for reconsideration under the TNVAT Act.