9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 925 - HC - VAT and Sales TaxValidity of Assessment order - TNVAT Act, 2006 - completion of assessment solely placing reliance on the Advance Ruling, given by the Authority for Clarification and Advance Ruling - Entry 51 of Part-B of the First Schedule - sale of batter in loose condition taxable at 5% - Idli Wet Maavu - Dosai Wet Maavu - Vada wet Maavu - Addai Wet Maavu - Is the decision of advance ruling applicable to the petitioner? - Held that - the proceedings, dated 2.12.2013, is not a Clarification issued by the Commissioner nor a Circular, but it is a proceedings of the Authority for Clarification and Advance Ruling, exercising power under Section 48-A of the TNVAT Act, 2006. Therefore, if the product is of the same nature, then obviously the assessing officer will apply the Advance Ruling. If according to the petitioner, the product manufactured by them is slightly different and the Advance Ruling is not applicable, then they have to file a revision petition before the concerned authority, in terms of Section 48-A(4) of the TNVAT Act, 2006. The Advance Ruling Authority has power to review, amend or revoke its Clarification or advance ruling at any time for good and sufficient cause, after giving an opportunity of being heard to the affected parties. If the petitioner s case is that the Clarification would not apply to their case, or if it is erroneous, then, they have to approach the authority by seeking for review of the orders. The petitioner is directed to file a petition to review the Clarification, dated 2.12.2013, in A.C.A.A.R 11/2013-14, before the authority for Clarification and Advance Ruling. Along with the petition, the petitioner should produce necessary proof to show as to how the Clarification would not be applicable to them, vis-a-vis, the products manufactured by them. Till orders are passed by the Advance Ruling Authority, further proceedings, pursuant to the impugned assessment orders, shall be kept in abeyance. Petition disposed off - decided in favor of petitioner.
Issues:
Challenge to assessment orders under TNVAT Act for multiple years based on reliance on Advance Ruling. Analysis: The petitioner, a registered dealer under TNVAT Act, challenged assessment orders for various years, contending that the assessing authority erred by relying solely on an Advance Ruling obtained by another entity. The petitioner argued that the authority's reliance on the ruling was incorrect, citing precedents where it was held that the Commissioner lacks power to issue clarifications on tax rates and circulars lack legal authority. However, the court clarified that the 2.12.2013 proceedings were not a clarification or circular but an exercise of power by the Authority for Clarification and Advance Ruling under Section 48-A of the TNVAT Act. The court directed the petitioner to file a review petition challenging the applicability of the Advance Ruling within two weeks, providing evidence of how the ruling does not apply to their products. The Advance Ruling Authority was instructed to consider the petition, give the petitioner and assessing officer notice, and pass appropriate orders within four weeks from the filing date. Until the Authority's decision, further proceedings based on the assessment orders were to be suspended. In conclusion, the writ petitions were disposed of with no costs, and connected miscellaneous petitions were closed. The judgment emphasized the proper procedure for challenging an Advance Ruling under the TNVAT Act, highlighting the role and powers of the Advance Ruling Authority in reviewing, amending, or revoking rulings for good cause after giving affected parties an opportunity to be heard.
|
