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2015 (12) TMI 179 - HC - VAT and Sales TaxRejection of aplication u/s 84 - Rectification of mistake - Held that - An opportunity should be given before rejecting the application filed under Section 84 of the Act. As far as the present case is concerned, the same is not provided. When such being the case, there is no justifiable reason for the assessing authority to reject the application filed under Section 84 of the Act - impugned order passed by the respondent dated 09.10.2015 is set aside and the matter is remitted back to the respondent for passing appropriate orders on merits and in accordance with law - Decided in favour of assessee.
Issues:
Challenge to order of respondent dated 09.10.2015 under TNVAT Act. Rectification application under Section 84 of TNVAT Act. Power of assessing authority to rectify errors apparent on the face of the record. Opportunity to be given before rejecting application under Section 84 of TNVAT Act. Analysis: The petitioner, a dealer in tyres, challenged the respondent's order dated 09.10.2015 under the TNVAT Act. The petitioner reported total and taxable turnover for assessment years 2010-11 to 2013-14, which was accepted and assessed under Section 22(2) of the TNVAT Act. Following errors in the assessment order, the petitioner filed a Section 84 application on 07.10.2015 within the prescribed time. The petitioner also raised concerns regarding the legislative competence of the State and the pending SLP before the Supreme Court. The respondent rejected the petition on 09.10.2015, which the petitioner deemed arbitrary and illegal, especially considering the power under Section 84(4) of the Act to entertain such petitions. The petitioner argued that the incentives to customers should not be part of the sale consideration, making the inclusion in taxable net arbitrary and illegal. The respondent's rejection of the Section 84 application was contested by the petitioner, emphasizing the authority's power to rectify errors under Section 84 of the Act. The petitioner sought rectification to eliminate the entire liability, urging the court to allow the writ petition. The Additional Government Pleader contended that since the assessment order challenge was dismissed by the Court and the pending SLP, no error was apparent on the record justifying the rejection of the rectification petition. The Court noted the previous writ petition dismissal and pending SLP, along with errors apparent on the record prompting the Section 84 application. Section 84 of the TNVAT Act empowers rectification of such errors, even if the assessment order is under appeal or revision. Referring to Section 84 of the TNVAT Act, the Court highlighted the authority's power to rectify errors apparent on the face of the record within five years of the order, with due notice and opportunity to the dealer. Noting the lack of opportunity before rejecting the application in this case, the Court set aside the respondent's order dated 09.10.2015 and remitted the matter back for appropriate orders within six weeks, ensuring compliance with Section 84 provisions. In conclusion, the Court directed the respondent to reconsider the rectification application in accordance with the law and provide the petitioner with a fair opportunity as mandated by Section 84 of the TNVAT Act.
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