2016 (7) TMI 442 - HC - VAT and Sales Tax

CST liability - failure to submit C -Forms - assessment order was passed without affording an opportunity of personal hearing. - The learned Senior Counsel appearing for the petitioner submitted that the petitioner is in possession C-Forms and prays for one more opportunity and that would be the final opportunity, so as to enable the petitioner to produce the records to enable the assessing authority to consider the same. - Held that - In the light of the above, the impugned order passed by the first respondent cannot be faulted. However, since the petitioner has pleaded certain operational difficulties in securing C Forms immediately, the petitioner is granted two months time to produce the remaining C Forms and it is open to the petitioner to approach the first respondent along with the C Forms and submit a request to revise the assessment. - Matter remanded back.

Summary

Issues:
1. Assessment conducted without affording an opportunity of personal hearing.
2. Petitioner's request for additional time to submit 'C' Forms for assessment.
3. Consideration of operational difficulties faced by the petitioner in obtaining 'C' Forms.

Analysis:
1. The petitioner had previously filed a writ petition due to the Assessing Officer proceeding with the assessment without providing a personal hearing opportunity. The court had quashed the initial assessment order and directed a fresh assessment with a reasonable opportunity for the petitioner to be heard, as mandated by Section 22(4) of the Tamil Nadu Value Added Act, 2006.

2. Subsequently, the petitioner was given multiple adjournments for personal hearings but failed to attend. The Assessing Officer proceeded with the assessment based on available information, determining the total and taxable turnover. Although the petitioner submitted objections, the assessment order confirmed the turnover but dropped the proposed penalty under relevant sections of the CST Act and TNVAT Act, 2006.

3. Despite being granted a personal hearing opportunity and submitting objections, the petitioner cited operational difficulties in obtaining 'C' Forms due to multi-state operations. The petitioner requested condonation of delay and sought one final opportunity to present the remaining 'C' Forms for assessment. The court acknowledged the difficulties faced by the petitioner and granted a two-month extension to produce the outstanding 'C' Forms, allowing a revision of the assessment upon compliance.

In conclusion, the court disposed of the writ petitions, granting the petitioner additional time to submit the required 'C' Forms and directing the Assessing Officer to reconsider the assessment upon receipt of the forms, emphasizing compliance with the legal procedures.