2019 (1) TMI 555 - HC - VAT and Sales Tax

Validity of assessment order - filing of bogus Form F declarations - no opportunity of personal hearing granted - principles of natural justice - Held that - When the original Form F declarations were submitted to the Assessing Officer on 09.7.2018, by then, the assessment was completed. Though the assessee stated that the assessment order dated 09.5.2018 was served on 09.7.2018 only in person, there is no proof to substantiate the same. Be that as it may, the purpose for issuing the Form F declarations is to avail concessional rate of tax. This is provided under the Statute and therefore, the Assessing Officer, on a technical plea, cannot refuse to accept the Form F declarations. In fact, the Commissioner of Commercial Taxes, Commercial Tax Department, Government of Tamil Nadu issued a circular stating that the Form F declarations can be accepted by the Assessing Officer even after completion of assessment - one opportunity can be granted to the appellant to go before the Assessing Officer to submit the Form F declarations and put forth their contentions, so that the assessment can be done in a proper manner. The assessee is directed to treat the assessment order dated 09.5.2018 as a show cause notice and submit their objections within 15 days from the date of receipt of a copy of this judgment - appeal allowed by way of remand.

Summary

Issues:
Challenging assessment order under CST Act for 2016-17 based on natural justice violation and late service of order. Validity of Form F declarations submitted by assessee. Opportunity for reassessment after obtaining original Form F declarations.

Analysis:
The appeal was filed against an order from a learned Single Judge concerning a writ petition challenging an assessment order under the Central Sales Tax Act, 1956 for the year 2016-17. The assessee, a dealer in automobile spares, contested the assessment order on grounds of natural justice violation and delayed service of the order. Initially, the assessee submitted Form F declarations which were later deemed bogus by the Department. Subsequently, the assessee obtained original Form F declarations from the web portal of the Commercial Taxes Department of the Government of Tamil Nadu. The learned Single Judge directed the assessee to pursue the appeal remedy. The appellant argued that the order was served late and violated natural justice principles. The Additional Government Pleader contended that the issues could be raised before the Appellate Authority.

Upon review, the Court found that the original Form F declarations were obtained after the assessment was completed. The purpose of Form F declarations is to avail a concessional rate of tax, and the Assessing Officer cannot reject them on technical grounds. A circular by the Commissioner of Commercial Taxes allowed acceptance of Form F declarations even after assessment completion. The Court decided to grant the appellant one opportunity to submit the original Form F declarations and present their case to the Assessing Officer for a proper assessment. The writ appeal was allowed, setting aside the previous order and directing the assessee to treat the assessment order as a show cause notice, submit objections within 15 days, and provide the original Form F declarations for reassessment. No coercive action was to be taken until the reassessment was completed.

The appellant claimed they received bogus Form F declarations from the consignee without their knowledge. The Court directed the respondent to investigate the matter and take appropriate action against those responsible. No costs were awarded in this judgment.