2018 (1) TMI 1590 - HC - VAT and Sales Tax

Validity of assessment order - TNVAT Act - purchase from the registration canceled dealers - reversal of input tax credit as suggested by the Chartered Accountant in Form WW - petitioner pleads that one more opportunity may be granted to the petitioner to go before the Assessing Officer since the petitioner is in the process of filing a petition under Section 84 of the said Act for reopening the assessment - HELD THAT - The writ petition is disposed of with a direction to the petitioner to pay the tax towards reversal of input tax credit as suggested by the Chartered Accountant in Form WW, being a sum of ₹ 19,712/-. In addition to that, the petitioner is directed to pay 15% of the disputed tax under the other two heads namely reversal of input tax credit under Section 19(5)(c) of the State Enactment and the purchases alleged to have been effected from registration canceled dealers, within a period of 15 days from the date of receipt of a copy of this order. If the petitioner complies with the above two conditions, they will be entitled to treat the impugned assessment order as a show cause notice and submit their objections within a period of 15 days thereafter.

Summary

Issues:
Challenging an order of assessment under the Tamil Nadu Value Added Tax Act, 2006 for the year 2012-13.
Granting one more opportunity to the petitioner for assessment proceedings.
Reversal of input tax credit and purchases from registration canceled dealers.

Analysis:
The petitioner filed a writ petition challenging an assessment order passed by the respondent under the Tamil Nadu Value Added Tax Act, 2006 for the year 2012-13. The petitioner did not cooperate with the assessment proceedings by not filing objections or producing supporting documents in response to the revision notice, leading to the impugned order. The petitioner sought another opportunity to approach the Assessing Officer, mentioning their intention to file a petition for reopening the assessment under the Central Sales Tax Act, 1956 to avoid reversal of input tax credit under the State Enactment.

Regarding the purchases allegedly made from registration canceled dealers, the petitioner claimed to have sufficient evidence showing the validity of the dealers' registration certificates. The petitioner's counsel referred to a Division Bench judgment in support of their case. The issue of reversal of input tax credit as advised by the Chartered Accountant was also addressed, with the petitioner agreeing to pay the required amount.

The Court decided to grant the petitioner one more opportunity, subject to conditions. The writ petition was disposed of with a direction for the petitioner to pay the tax towards reversal of input tax credit and a percentage of the disputed tax under specific heads within a specified timeframe. Compliance with these conditions would allow the petitioner to treat the assessment order as a show cause notice, enabling them to submit objections for reconsideration. Failure to comply would result in automatic dismissal of the petition, allowing the respondent to recover the tax as per the original assessment order. No costs were awarded in this judgment.