2016 (9) TMI 666 - HC - VAT and Sales Tax

Validity of order of assessment - assessment years 2006-07 to 2014-15 - Tamil Nadu Value Added Tax Act - opportunity of personal hearing - Held that - decision of the case SRC Projects Private Limited vs. Commissioner of Commercial Taxes, Chennai and another 2008 (9) TMI 914 - MADRAS HIGH COURT is relied upon - failure to grant an opportunity of personal hearing would render the impugned order as having been passed in violation of principles of natural justice. Re-assessment of turnover - alleged mismatch as per the departmental website - circular issued by the Principal Secretary/Commissioner of Commercial Taxes dated 01.04.2015 - Held that - since the issue is a recurrent issue in all the assessment circulars, the Commissioner thought fit to issue a circular dated 01.04.2015 in Circular NO.10/2015/D3/8562/2014. As per this circular, in cases of mismatch, invoice-wise data for mismatch to each demand must be mandatorily attached or to the notice either in print form or as a CID or send as email (in case it is voluminous). Further, the fact of enclosing such mismatch transaction date shall be clearly mentioned entered in the notice and acknowledgment receipt obtained. Matter remanded - details of mis-match to be furnished as per direction issued by Commissioner - petitioner to be granted opportunity of personal hearing - assessment to be done by passing a speaking order - petition disposed of - decided in favor of petitioner.

Summary

Issues:
Challenge to assessment orders under the Tamil Nadu Value Added Tax Act for multiple assessment years - Failure to grant opportunity of personal hearing - Violation of circular by Assessing Officer.

Analysis:
The petitioner challenged assessment orders dated 16.09.2015 under the Tamil Nadu Value Added Tax Act for the years 2006-07 to 2014-15. The main contentions raised were the failure to provide a personal hearing despite a specific request and the violation of a circular regarding re-assessment based on alleged mismatches. The respondent admitted that no personal hearing was granted, which was a violation of principles of natural justice as established in previous court decisions.

The circular dated 01.04.2015 issued by the Commissioner mandated specific procedures for re-assessment based on mismatches from the departmental website. It required the Assessing Officer to provide invoice-wise data of mismatches, ensure a personal hearing if requested, and issue a speaking order addressing all contentions raised by the dealer. The court noted that the impugned order did not adhere to these parameters, leading to the petitioner's success in challenging the orders.

As a result, the court allowed the writ petitions, quashed the impugned orders, and remanded the matters to the respondent for fresh consideration. The respondent was directed to provide all details regarding mismatches as per the circular, allow the petitioner to submit objections, conduct a personal hearing, and re-do the assessment in accordance with the law by issuing a speaking order addressing all contentions. No costs were awarded, and connected miscellaneous petitions were closed.