2017 (11) TMI 732 - HC - VAT and Sales Tax

Validity of assessment order - natural justice - Held that - On a perusal of the impugned Assessment Order it is evidently clear that that the same has been completed without an opportunity of personal hearing to the petitioner and it is in violation of principles of natural justice - the matters are remanded to the respondent for fresh consideration - appeal allowed by way of remand.

Summary

Issues involved:
Challenging Assessment Order under Central Sales Tax Act and Tamil Nadu Value Added Tax Act for Assessment Year 2012-13. Five issues in impugned Assessment orders: 1) Sales covered by C Forms, 2) Sales not covered by C Forms, 3) Disallowed Export Sales, 4) Job work taxed as inter-state sales, 5) ITC reversal under Section 9(2) r/w. 19(5)(c) of the Act.

Analysis:

1) Sales covered by C Forms:
- Petitioner paid through credit at the time of filing returns.
- No opportunity of personal hearing provided before passing Assessment Order.
- Requested extension of time to produce majority C forms.

2) Sales not covered by C Forms:
- Taxed at 14.5% without personal hearing opportunity.
- Petitioner claims could have produced majority C forms if given a chance.

3) Disallowed Export Sales:
- Export documents submitted post-Assessment Order.
- Requested personal hearing to prove valid export sales.

4) Job work taxed as inter-state sales:
- Previous writ petition for Assessment Year 2011-12 addressed similar issue.
- Court remanded matter for fresh consideration due to violation of natural justice.
- Similar order expected in current petition due to lack of personal hearing.

5) ITC reversal under Section 9(2) r/w. 19(5)(c) of the Act:
- Petitioner argues no power under Section 9(2) of CST Act for ITC reversal.
- Cites precedent in support from M/s. Chennai United Metal Industries Pvt Ltd. case.

Court Decision:
- Assessment Orders set aside due to violation of natural justice.
- Matters remanded to respondent for fresh consideration.
- Respondent to verify C forms, export documents, and initiate proceedings under TN VAT Act if ITC reversal needed.
- Authorized representative of petitioner to be given personal hearing.
- No costs awarded; connected miscellaneous petitions closed.