2016 (11) TMI 130 - HC - VAT and Sales Tax

Pre-revision notice - Held that - Since the dates are very clear from the records, there can be no doubt that the respondent has passed the impugned order in violation of principles of natural justice - the petitioner is directed to treat the impugned orders as show cause notices, submit their replies within a period of fifteen days from the date of receipt of a copy of this order and produce Form-C and Form-H statements along with explanations - It is needless to mention that since this Court directed the petitioner to treat the impugned assessment orders as show cause notice, the respondent shall not initiate any coercive action to recovery of tax and penalty - Petitions are disposed of.

Summary

Issues:
Challenge to assessment orders under the Central Sales Tax Act, 1956 for the assessment years 2013-2014 & 2014-2015 based on violation of principles of natural justice.

Analysis:
The petitioner, a dealer in Drugs and Medicines registered under the Tamil Nadu Value Added Tax Act, challenged the assessment orders dated 10.07.2015 & 27.02.2016 for the respective assessment years under the Central Sales Tax Act, 1956. The petitioner contended that the pre-revision notice for the assessment year 2013-14 was issued with a fifteen-day reply period, but the impugned order was passed prematurely on 10.07.2015. Additionally, the petitioner requested time to submit C-Forms and Form-H for the other assessment year. The Court acknowledged the violation of natural justice due to premature orders but decided not to set aside the impugned orders.

The Court directed the petitioner to treat the impugned orders as show cause notices, allowing fifteen days to respond and submit the required forms. Upon receipt, the respondent was instructed to verify the forms and proceed with assessments if in order. The Court emphasized that denial of concessional tax rates solely based on missing forms was not justified. Furthermore, the respondent was prohibited from coercive recovery actions during this process to redo the assessments in compliance with the law.

In conclusion, the Writ Petitions were disposed of with no costs, and connected Miscellaneous Petitions were closed. The judgment aimed to rectify the procedural error while ensuring fairness and adherence to natural justice principles in the assessment process under the Central Sales Tax Act, 1956 for the specified years.