2009 (8) TMI 1241 - HC - VAT and Sales Tax

Summary

Issues involved:
The issues involved in the judgment are the quashing of an order passed by the Special Committee u/s 16(d) of the Tamil Nadu General Sales Tax Act, 1959, based on allegations of incorrect assessment and violation of principles of natural justice.

Summary:

Assessment and Deductions:
The petitioner, a cement dealer, contested an assessment order under Section 12(2) of the Act, claiming that the assessing authority did not deduct a discount given by cement companies. The petitioner argued that the assessment was done incorrectly, not in line with the notification issued by the Commissioner of Commercial Taxes, and violated the principles of natural justice.

Contentions Raised:
In the petition before the Committee u/s 16(d), the petitioner contended that the assessing authority's reliance on alleged stock variation during inspection was unjust as they were compelled to sign a prepared statement without due consideration. The petitioner also challenged the penalty levied under Section 12(3)(b), stating there was no intent to evade tax and thus, the penalty was unwarranted.

Violation of Natural Justice:
The petitioner's counsel argued that the Committee failed to consider relevant factual details, leading to a violation of natural justice. Citing previous court orders and a clarification by the Commissioner of commercial taxes, the petitioner emphasized that the penalty should only be imposed in cases of intentional concealment of turnover.

Committee's Findings and Court Decision:
The Committee found no violation of principles of natural justice or the Act and Rules. However, the Court deemed this finding without reasons as a violation of natural justice, citing the necessity for recording reasons in administrative decisions. Consequently, the Court set aside the impugned order and remanded the matter for fresh consideration by the assessing authority.

In conclusion, the Court directed the assessing authority to reevaluate the petitioner's case, considering all facts and legal aspects, and pass appropriate orders in accordance with the law.