2016 (6) TMI 1482 - HC - VAT and Sales Tax

Validity of assessment order - short levy of tax - availment of excess ITC - discrepancies in reported sales - HELD THAT - The petitioner along with their reply to the show cause notice have appended the statements, which were recorded by the Enforcement Wing and requested the respondent to sort out the matter at the earliest. However, the respondent while completing the assessment did not mention anything about the statements and as to whether the plea raised by the petitioner was a bona fide plea. The petitioner submits that one more opportunity may be granted to the petitioner to place these materials and the respondents may be directed to consider the effect of those materials. However, to be entitled to one more opportunity to place all the materials before the respondents, this Court is of the view that the petitioner should be directed to pay a portion of the tax liability as demanded. The petitioner is directed to pay 15% of the disputed tax within a period of six weeks from the date of receipt of a copy of this order and if such payment is effected by the petitioner within the time limit, then the petitioner would be entitled to treat the impugned proceedings as show cause notices and submit their objections to the same and the respondents are directed to afford an opportunity of personal hearing and conclude the proceedings in accordance with law - petition disposed off.

Summary

Issues involved: Challenge to assessment orders u/s Tamil Nadu Value Added Tax Act, 2006 for years 2009-2010 to 2012-2013 based on alleged short levy of tax and discrepancies in reported sales.

Summary:
The petitioner, a registered dealer, challenged assessment orders for multiple years alleging short levy of tax due to discrepancies in reported sales. Notices were issued regarding excess Input Tax Credit (ITC) availed by other dealers. The petitioner defended their reporting based on advice from a Circle Officer. Assessment was completed without considering statements made during VAT Audit. Petitioner requested another opportunity to present evidence, subject to paying 15% of disputed tax.

Upon review, the Court directed the petitioner to pay 15% of disputed tax within six weeks. Compliance would allow the petitioner to submit objections and have a personal hearing, treating the proceedings as show cause notices. Failure to comply would nullify the benefit of the order, permitting the respondents to proceed as per law. No costs were awarded, and connected petitions were closed.