2016 (9) TMI 769 - HC - VAT and Sales Tax

Validity of revised assessment orders - Section 27(1)(a) of the Act - TNVAT Act, 2006 - registered dealer - inspection of the place of business of petitioner by the enforcement wing - rejection of petitioner s return - principles of natural justice - Held that - opportunity granted to petitioner subject to conditions. The petitioner is directed to pay 15% of the disputed tax, for each of the three assessment years, within a period of three weeks from the date of receipt of a copy of this order. If the payment is made within the time permitted, the petitioner will be entitled to treat the impugned assessment orders, as show cause notices, and submit their objections, within a period of two weeks, thereafter. On receipt of the objections, the respondent shall afford an opportunity of personal hearing to the petitioner, peruse the books of accounts, ledgers, records, etc., and thereafter, re-do the assessment in accordance with law - petition disposed off - decided partly in favor of petitioner.

Summary

Issues:
Challenging revised assessment orders under Tamil Nadu Value Added Tax Act, 2006 for years 2012-13, 2013-14, and 2014-15.
Violation of principles of natural justice in the assessment process.
Merits of the assessment regarding liquor sales, tax remittance, and penalty imposition.

Analysis:
1. Challenging Revised Assessment Orders:
The petitioner contested the revised assessment orders issued by the respondent under the Tamil Nadu Value Added Tax Act, 2006 for the years 2012-13, 2013-14, and 2014-15. The petitioner raised objections based on the grounds of violation of natural justice and presented various contentions regarding the assessment process.

2. Violation of Principles of Natural Justice:
The petitioner alleged a violation of natural justice in the assessment process. However, the court found that the petitioner had received pre-revision notices but failed to submit objections, indicating a lack of utilization of the opportunity granted. As a result, the court did not accept the petitioner's claim of a violation of natural justice in the assessment.

3. Merits of the Assessment - Liquor Sales and Tax Remittance:
The petitioner argued that they maintained proper records, bills, vouchers, and registers for liquor sales in the bar. They also highlighted their compliance with tax remittance by filing returns for the assessment years in question. The petitioner contended that there was no suppression or omission on their part regarding the transactions.

4. Penalty Imposition and Request for Opportunity:
Regarding penalty imposition and the addition of 14.5% on the turnover difference, the petitioner found it unreasonable. They also mentioned the rejection of their application under Section 84 of the Act. The petitioner sought one more opportunity to present objections and clarify the nature of transactions to the Assessing Officer.

5. Court's Decision and Directions:
After considering the submissions, the court granted the petitioner one more opportunity under certain conditions. The petitioner was directed to pay 15% of the disputed tax for each assessment year within three weeks. Upon payment, the petitioner could treat the assessment orders as show cause notices, submit objections within two weeks, and have a personal hearing with the respondent for reassessment. Failure to pay the specified tax amount would result in the dismissal of the writ petitions.

In conclusion, the court disposed of the writ petitions accordingly, without imposing any costs, and closed the connected Writ Miscellaneous Petitions.