2016 (11) TMI 844 - HC - VAT and Sales Tax

Validity of assessment order - opportunity to file objections - the reply submitted by the petitioner dated 29.01.2016 along with annexures were available on the file of the respondent. However, the petitioner s grievance is that unless and until full details are furnished, they would not be in a position to submit effective objections - Held that - The stand taken by the petitioner appears to be fully justified, since to submit an effective objections, particulars have to be furnished by the Department. Therefore, the petitioner has now sought for furnishing the Bill Nos. and other details in respect of the transactions which have been referred to in the impugned orders. This having not been furnished, this is a fit case where the assessment could be redone, after giving the necessary particulars - petition allowed - matter on remand.

Summary

Issues:
Challenge to assessment orders under TNVAT Act for the assessment year 2007-08 to 2012-13 based on VAT Audit findings.

Analysis:
The petitioner, a dealer in spices registered under TNVAT Act and CST Act, challenged assessment orders dated 29.07.2016 for the years 2007-08 to 2012-13. A VAT Audit conducted on 05.11.2014 highlighted defects, with the petitioner given an opportunity to file objections. The respondent completed assessments and confirmed proposals in show cause notices due to the petitioner's alleged failure to submit objections.

The petitioner contended that they submitted a reply on 29.01.2016, supported by Annexure-II, despite the orders stating otherwise. It was acknowledged that the reply and annexures were considered to some extent, with relief granted. However, the petitioner argued that without full details, effective objections couldn't be made. The petitioner sought the necessary particulars like Bill Nos. and transaction details to be furnished by the Department for a fair assessment process.

The Court found the petitioner's stance justified, emphasizing the need for complete information to submit effective objections. Consequently, the Writ Petitions were allowed, setting aside the impugned orders and remanding the matter to the respondent for fresh consideration. The petitioner was directed to collect all required particulars from the respondent within two weeks, submit objections within fifteen days thereafter, and be granted a personal hearing for the assessments to be redone in compliance with the law. No costs were awarded, and connected Miscellaneous Petitions were closed as a result of the judgment.