2021 (11) TMI 1152 - HC - VAT and Sales Tax

Mismatch between the turnover declared in the returns filed in the assessment year 2010-11 and the information captured by the respondent in their website - circular dated 24.02.2021 - HELD THAT - Since the issue will have to be now revisited in the light of the above circular, the impugned order passed by the first respondent stands quashed and the case is remitted back to the second respondent to pass appropriate orders in the light of the above circular within a period of 30 days from the date of receipt of copy of this order. Needless to state before passing any order by the respondent in accordance with law, the petitioner shall also be heard. Petition disposed off.

Summary

Issues:
Mismatch between turnover declared and information captured by respondent's website in assessment year 2010-11; Framing of appropriate circulars with guidelines to address such mismatches; Review of earlier orders and dismissal of review petition; Issuance of guidelines by Principal-Secretary Commissioner of Commercial Taxes; Quashing of impugned order and remittance of case for fresh orders based on new circular; Hearing of petitioner before passing any new order.

Analysis:
The dispute in the writ petition stemmed from a discrepancy between the turnover declared by the petitioner in the assessment year 2010-11 and the information recorded by the respondent on their website. This issue led to the filing of multiple writ petitions. A previous order in a related case, JKM Graphics Solutions Private Limited Vs. The Commercial Tax Officer, [2017] 99 VST 343 (Mad.), had been issued by the Court on 01.03.2017.

A learned Single Judge of the Court referred to the practices in Maharashtra regarding such mismatches and directed the respondents to establish suitable circulars with guidelines to handle these discrepancies. The department challenged this directive by filing a writ appeal and a review petition. The review petition (No.173 of 2018) was ultimately dismissed on 12.02.2021. Subsequently, the Principal-Secretary Commissioner of Commercial Taxes issued a circular on 24.02.2021 containing relevant guidelines.

In light of the newly issued circular, the Court quashed the impugned order passed by the first respondent and remitted the case back to the second respondent for fresh orders within 30 days from the receipt of the Court's order. The petitioner was also directed to be heard before any new decision was made by the respondent. The writ petition was disposed of with these directions, and related miscellaneous petitions were closed without any costs being imposed.