2016 (9) TMI 517 - HC - VAT and Sales Tax

Validity of order of assessment - revision of assessment - audit conducted under Section 64 of the Act by Enforcement Wing Officers - delay in submitting of objections due to unavoidable cause - TNVAT Act - opportunity if being heard - Held that - the assessment proceedings have been completed ex parte. However, the assessment officer cannot be blamed for the same, as the petitioner did not file the objection in time. Though pre-revision notice was served on them on 29.01.2016, taking into consideration of the fact that the petitioner pleaded one more opportunity, opportunity granted subject to certain conditions - petitioner directed to pay 15% of the disputed tax for each of the assessment years within a period of four weeks from the date of receipt of copy of this order. If the same is remitted, then, the petitioner is entitled to treat the impugned assessment orders as show cause notice and submit their objections within a period of fifteen days there from. On receipt of the objection, the respondent shall afford opportunity of personal hearing and redo the assessment in accordance with law, after considering the objection raised by the petitioner and also taking note of the submission that the petitioner may make during the course of personal hearing - petition disposed off - decided in favor of petitioner.

Summary

Issues:
Challenge to assessment orders under TNVAT Act for multiple assessment years due to inability to submit objections on time.

Analysis:
The petitioner, a registered dealer under the TNVAT Act, challenged assessment orders for the years 2007-2008 to 2013-2014. The orders were revisions following an audit by Enforcement Wing Officers. The petitioner's counsel argued that due to flooding of business premises, they couldn't submit objections to the pre-revision notice timely. The Court noted that assessments were completed ex parte as objections were not filed in time. Despite this, considering the petitioner's plea for another chance, the Court directed the petitioner to pay 15% of disputed tax for each year within four weeks. Upon payment, the petitioner could treat the assessment orders as show cause notices and submit objections within fifteen days. The respondent would then review the assessment after a personal hearing and considering the objections.

The Court clarified that failure to deposit the required amount within the stipulated time would result in dismissal of the petitions, allowing the petitioner to pursue remedies under the TNVAT Act. Until fresh orders were passed as per the Court's directions, the respondent was restrained from enforcing the demands in the assessment orders. The judgment concluded by disposing of the writ petitions and closing connected miscellaneous petitions without any costs incurred.