2018 (1) TMI 94 - HC - VAT and Sales Tax

Production of Form C declaration - under what circumstances the respondent can exercise its power under Section 84 of TNVAT Act? - Held that - The case on hand is one such case where the petitioner states that they are now in possession of the relevant declaration forms and if opportunity is granted, the petitioner would be able to produce the same - this Court is inclined to grant one opportunity to the petitioner to remedy the breach and produce the necessary documents - petition allowed by way of remand.

Summary

Issues:
1. Interpretation of Section 84 of the Tamil Nadu Value Added Tax Act (TNVAT Act) regarding the power of the respondent to revise assessment orders.
2. Whether the petitioner can produce Form C declarations after the assessment is completed.
3. Authority's power to extend time for submitting forms under Section 9(2) of the CST Act.

Analysis:

The petitioner challenged a communication from the third respondent refusing to revise the assessment order, stating that only an appeal could be filed against it. The petitioner contended that they were not served with the assessment orders and should be allowed to submit Form C declarations even after the assessment. The High Court considered the interpretation of Section 84 of the TNVAT Act in light of previous judgments. In Padmavathi Electricals case, the court allowed the revision of assessment orders based on Form I declarations. The court emphasized that the authority could allow further time for filing forms without requiring the assessee to prove sufficient cause. The judgment highlighted the distinction between the provisos in the Act and the Central Sales Tax Rules regarding extending time for filing forms.

The court also referred to the Ultrust Solution case, where it was established that the authority could extend time for submitting forms. Furthermore, the court analyzed Section 9(2) of the CST Act, noting that the authorities under the State Law could exercise functions for assessment and recovery of tax due under the Central Act. Therefore, the respondent had the power to invoke Section 84 of the TNVAT Act to revise the assessment under the CST Act.

In the current case, the court acknowledged that the petitioner now possessed the necessary declaration forms and granted them an opportunity to produce the documents to remedy the breach. The court directed the petitioner to file a petition under Section 84 of the TNVAT Act with all declaration forms, and upon receipt, the third respondent was instructed to reconsider the documents and re-do the assessment in compliance with the law. The writ petitions were disposed of with no costs, and connected Miscellaneous Petitions were closed.