2016 (1) TMI 549 - HC - VAT and Sales Tax

Validity of order passed where the petitioner did not produce the books of accounts - revenue submitted that while issuing notices dated 17.07.2015, the first respondent specifically directed the petitioner to produce the books of accounts. However, without complying with the said direction, the petitioner requested an opportunity of personal hearing. Hence, finding no other option, the first respondent passed the impugned assessment orders for the years in question. Held that - since the petitioner is involved in the business of works contract, it is necessary for the Assessing Officer to verify all the books of accounts before finalising the assessment. After elaborate contentions, learned counsel for the petitioner submitted that the petitioner is ready and willing to submit the entire records as required to the authority concerned within the time frame fixed by this court. - in order to provide yet another opportunity to the petitioner, the impugned assessment orders set aside - matter remanded back.

Summary

Issues:
Challenging assessment orders for multiple years without verifying books of accounts.

Analysis:
The petitioner, a registered dealer under the Tamil Nadu Value Added Tax Act and Central Sales Tax Act, engaged in works contract business, challenged assessment orders from 2010-11 to 2014-15. The petitioner's place of business was inspected, defects noted, and notices issued. The petitioner responded, stating readiness to produce records upon request. However, assessment orders were passed without hearing the petitioner, prompting the challenge.

The petitioner argued that objections were filed, offering to produce necessary books of accounts upon request, but the Assessing Officer did not direct the production. The petitioner sought to set aside the assessment orders due to lack of opportunity to present their case.

The Additional Government Pleader contended that the petitioner was directed to produce books of accounts but instead requested a personal hearing. Consequently, the assessment orders were passed as the petitioner did not comply with the directive.

The Court emphasized the necessity for the Assessing Officer to verify all books of accounts for a works contract business before finalizing assessments. The petitioner expressed readiness to submit records as required within the specified timeframe.

As a result, the Court set aside the assessment orders and directed the petitioner to provide all books of accounts within two weeks for fresh assessment. The Assessing Officer was instructed to consider objections, verify accounts, and pass new orders within four weeks after a personal hearing. Failure to comply would allow the Assessing Officer to issue new orders within four weeks.

Ultimately, all writ petitions were disposed of without costs, with connected Miscellaneous Petitions closed.