2019 (4) TMI 1635 - HC - VAT and Sales Tax

Validity of assessment proceedings - revision of assessment - Section 16(1) of the TNGST 1959 - HELD THAT - From the Original Assessment Order, it appears that the Petitioner submitted Form-H and also submitted other relevant documents. However, the party claiming the benefit of exemption is required to establish the entitlement to exemption by filing and producing for verification all relevant documents. Even assuming that the documents were submitted by the petitioner when the Form-H was originally filed, as correctly contended by the learned counsel for the Respondent, the Assessing Officer is entitled to call for such documents to verify the validity of the claim for exemption. This Court is of the view that the Petitioner should be given an opportunity to submit necessary supporting documents and establish the claim for exemption especially in view of the fact that the Petitioner did not previously submit a written representation on receipt of the reassessment notice. The matter is remanded to the Respondent to carry out the reassessment after providing a reasonable opportunity to the Petitioner to submit all necessary documents to substantiate its claim for exemption - Petition allowed by way of remand.

Summary

Issues:
Writ of Certiorari to quash re-assessment proceedings under TNGST Act for Assessment Year 2000-01.

Analysis:
The petitioner, a dealer in packing materials and hangers, sought a Writ of Certiorari to challenge the re-assessment proceedings by the respondent under Section 16(1) of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act) for the Assessment Year 2000-01. The petitioner contended that all necessary documents, including Form-H, were submitted during the original assessment, and the exemption on pre-export sales was approved. However, a notice for re-assessment was issued alleging non-submission of relevant documents like purchase orders, sales invoices, Form H, and Bill of Lading. The re-assessment proposed disallowing the exemption on pre-export sales and imposing a penalty under Section 16(2) of the TNGST Act.

The petitioner argued that the burden of proof shifted to the Tax Authority to verify the submitted documents, as acknowledged in the Original Assessment Order. Although no written response was filed to the re-assessment notice, an oral representation was made. Reference was made to a previous judgment emphasizing the need for proof of actual shipment of goods if foreign export agreements are not available.

The respondent contended that the Assessing Officer has the right to request all relevant documents, not limited to Form-H, to verify exemption conditions. A different judgment was cited, stating that filing Form-H is not absolute, and the dealer must provide proof of actual export, including specific details like invoice number, date of export, and bill of lading.

Upon examination of the submissions and documents, the Court noted that while the petitioner had initially submitted Form-H and relevant documents, the Assessing Officer could request further proof to verify exemption claims. The Court held that the petitioner should be given an opportunity to provide additional supporting documents to establish the exemption claim, especially since no written response was submitted earlier.

Consequently, the writ petition was disposed of by setting aside the re-assessment order and remanding the matter to the respondent for reassessment. The petitioner was directed to submit objections within two weeks, and the Assessing Officer was instructed to complete the reassessment within four weeks thereafter. The Court clarified that its observations should not influence the reassessment proceedings, and no costs were awarded.