2016 (4) TMI 1061 - HC - VAT and Sales Tax

Revision of assessment - Selling Dealer has not filed the monthly returns in Form-I with payment of tax to the respective Assessing Officer and the respondent had proposed to reject the returns already submitted by the petitioner - Revenue contended that as against the judgment relied upon by the petitioner the respondent therein preferred a Writ Appeal but the Division Bench has not granted any interim order in the Writ Appeal - Held that - in view of the judgment of this court in the case of Althaf Shoes (P) Ltd., Vs. Assistant Commissioner (CT), Valluvarkottam Assessment Circle, Chennai - 6 2011 (10) TMI 567 - Madras High Court , it is clear that the issue involved in the present Writ Petition is identical. Therefore, since the Division Bench has not granted any interim order, following the ratio laid down in the said judgment, the impugned orders are set aside and matter remanded back. - Petition disposed of

Summary

Issues:
Challenging assessment proceedings under TNVAT Act, 2006 for multiple years based on non-filing of monthly returns leading to proposed revision of assessment and rejection of submitted returns.

Analysis:
The petitioner, a registered dealer under the TNVAT Act, challenged the assessment proceedings for various years, contending that monthly returns in Form-I were filed and accepted, leading to deemed completion of assessment as per Section 22(2) of the Act. The respondent issued a notice under Section 27 based on a report from the Departmental Website, proposing revision of assessment due to non-filing of returns by the selling dealer. The petitioner argued that liability cannot be imposed on the buyer for the seller's failure to pay tax. The petitioner cited a previous judgment emphasizing the Assessing Authority's duty to independently consider materials before finalizing assessments and not merely implement proposals from Enforcement/Audit Officers.

The Additional Government Pleader for the respondent noted a Writ Appeal filed against a similar judgment, where no interim order was granted by the Division Bench. The court observed that the issue in the present case was identical to the previous judgment cited by the petitioner. Since no interim order was given by the Division Bench in the related case, the court set aside the impugned orders dated 29.01.2016 and remanded the matter to the respondent for fresh consideration. The respondent was directed to reevaluate the matter after reviewing the returns filed by the assessee.

In conclusion, the court disposed of the Writ Petitions without costs, closing the connected miscellaneous petitions. The judgment highlighted the importance of independent assessment consideration by the Assessing Authority and the need to review materials before finalizing assessments under the TNVAT Act, ultimately emphasizing a fair and just approach in tax assessment proceedings.