2016 (9) TMI 461 - HC - VAT and Sales Tax

Classification - hair oil taxable at 12.5%, under Entry-20 (Commodity Code 321 of Part C under I Schedule) of TNVAT pure coconut oil VVD Herbal VVD Hibiscus VVD Anti-dandruffs vegetable oil - Held that - Court is of the view that the matter required to be remitted back to the respondent, to enable the petitioner to furnish the full details, because, for the first time, before the Court, they stated that the commodity code number is 765 - the petitioner is directed to treat the impugned proceedings, as show cause notices, and submit their objection(s) to the same, within a period of two weeks from the date of receipt of a copy of this order and along with the objection(s), the petitioner shall produce the proper proof from the manufacturers, as regards the nature of products, which were sold to the petitioner, along with the commodity code(s) and other related documents opportunity of hearing to be provided and assessment to be done petition disposed off decided in favor of petitioner.

Summary

Issues:
Challenging assessment orders under Tamil Nadu Value Added Tax Act, 2006 and Central Sales Tax Act, 1956 for multiple years.

Analysis:
The petitioner, a registered dealer, challenged assessment orders for various years, arguing against taxation on hair oil purchases from a specific supplier. The respondent pointed out the taxable nature of hair oil and issued notices based on an audit objection. The petitioner failed to provide evidence of purchasing vegetable oil, leading to finalization of assessments by the respondent.

The petitioner contended that the supplier classified goods as exempted, highlighting an alleged error in the assessment orders. The respondent disputed the authenticity of the supplier's letter submitted by the petitioner. The court acknowledged the seriousness of the matter but decided to remit the case back to the respondent for further details from the petitioner regarding commodity codes.

Rather than setting aside the proceedings, the court directed the petitioner to treat them as show cause notices and submit objections within two weeks, supported by proper proof from manufacturers regarding the nature of products purchased. The respondent was instructed to re-do assessments after considering the objections and providing a personal hearing opportunity. The writ petitions were disposed of without costs, and related miscellaneous petitions were closed.