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2016 (9) TMI 664 - HC - VAT and Sales TaxOrder of assessment - Tamil Nadu General Sales Tax Act, 1959 - best judgement assessment - summon to produce books of accounts - limitation bar - section 16 of the TNGST Act - Held that - Sub-section (6) of Section 16 of the TNGST Act states that while completing the period of limitation for assessment or re-assessment, the time during which the appeal or proceedings are pending before the Appellate Authority or the Revisional Authority or the Special Tribunal or the Supreme Court shall be excluded. Time between the original order of assessment dated 10.03.2000 to the order passed by the Tribunal dated 23.12.2002 should stand excluded because after the Original Assessment order was passed, the petitioner filed an appeal before the first Appellate Authority, namely, the Appellate Assistant Commissioner (CT), Fort Round, Vellore and appeal was rejected as time barred. Thus if the time during which the matter was pending before the Appellate Authority and the Special Tribunal is excluded, then the impugned proceedings is not barred by limitation - no limitation bar. Liberty granted to the petitioner to treat the impugned proceedings as show cause notice and submit their objections within a period of two weeks from the date of receipt of copy of this. On receipt of the objections, the respondent shall afford an opportunity to the petitioner in which the petitioner shall produce the documents and books of accounts to show that they effected purchases from registered dealers and after perusing all the documents and considering the objections, the respondent shall re-do the assessment in accordance with law - assessment order dismissed - petition disposed off - decided partly in favor of petitioner
Issues Involved:
Challenge to assessment order under TNGST Act for the year 1997-98 based on best judgment, Barred by limitation under section 16 of TNGST Act, Proper manner of passing the assessment order. Analysis: Issue 1: Challenge to assessment order under TNGST Act for the year 1997-98 based on best judgment The petitioner challenged the assessment order passed under the Tamil Nadu General Sales Tax Act, 1959 for the year 1997-98, conducted on a best judgment basis. The petitioner failed to produce the books of accounts despite summons, leading to the completion of the assessment resulting in the impugned order. The petitioner contended that the assessment proceedings were time-barred under section 16(1)(a) of the TNGST Act. Legal precedents were cited to support the argument that the assessment notice issued after the cut-off date was barred by limitation. Issue 2: Barred by limitation under section 16 of TNGST Act The respondent argued that the proceedings were initiated before the cut-off date, and the issuance of summons prior to the end of the limitation period validated the assessment process. A distinction was made between the investigation of facts and the initiation of proceedings based on the discovery of facts. The court analyzed the timeline of events, including previous assessment orders, appeals, and tribunal decisions, to determine the validity of the assessment within the limitation period. Issue 3: Proper manner of passing the assessment order The court noted the lack of cooperation from the petitioner during the assessment proceedings, including non-submission of objections and failure to produce necessary documents. The petitioner sought an opportunity to demonstrate purchases from registered dealers with available documents. The court, while rejecting the limitation argument, granted liberty to the petitioner to treat the proceedings as a show cause notice. The petitioner was given a chance to submit objections and present relevant documents for a reassessment by the respondent in accordance with the law. In conclusion, the court dismissed the plea that the assessment order was barred by limitation, allowing the petitioner to present objections and evidence for a reassessment. The writ petition was disposed of with instructions for the respondent to re-do the assessment after considering the petitioner's submissions.
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