2019 (6) TMI 623 - HC - VAT and Sales Tax

Reversal of Input Tax Credit - TNVAT ACT - fervent plea made by the writ petitioner is that some time may be granted to the writ petitioner to file objections with supporting documents now - HELD THAT - Considering the peculiar facts and circumstances of the case and considering the undisputed legal position that the assessment in such cases have to necessarily be independent of proposal given by the Enforcement Wing Officers coupled with the fervent plea made by the writ petitioner that they will file objections together with documents now, this Court directs to set aside the impugned assessment orders - petitioner shall file objections together with all supporting documents within a period of four (4) weeks from the date of receipt of a copy of this order along with payment of 15% of disputed tax - petition disposed off.

Summary

Issues:
Assessment proceedings under Tamil Nadu Value Added Tax Act, 2006 for two different assessment years - 2013-14 and 2014-15.

Analysis:
The High Court of Madras delivered a common order in two writ petitions concerning assessment proceedings under the Tamil Nadu Value Added Tax Act, 2006. The petitions, numbered W.P.Nos.13687 and 13688 of 2019, were disposed of jointly as the parties and facts were identical. The petitions involved a petitioner who was a retailer of Public Address Systems and an authorized dealer for specific brands. The Enforcement Wing Officers conducted a surprise inspection on the petitioner's premises, covering multiple assessment years, including those subject to the writ petitions. Subsequently, proposals were sent to the respondent regarding the petitioner's liabilities under the TNVAT Act, notably focusing on the reversal of Input Tax Credit. Despite being granted time to file objections, the petitioner did not do so, leading to the confirmation of the proposals by the respondent.

The petitioner later requested to submit objections with supporting documents, acknowledging the delay in filing objections. The Revenue Counsel emphasized the necessity of objections for an independent assessment, citing a legal precedent where objections were filed. The Court recognized the legal requirement for an independent assessment, irrespective of the Enforcement Wing Officers' proposals. Considering the circumstances and the petitioner's plea to file objections belatedly, the Court set aside the assessment orders and directed the petitioner to submit objections with supporting documents within four weeks, along with payment of 15% of the disputed tax amount. Failure to comply would result in the revival of the impugned orders. If objections and payment were made within the specified period, the respondent would re-adjudicate the matter and pass orders accordingly, ensuring a personal hearing for the petitioner.

In conclusion, the Court disposed of both writ petitions with the outlined directions, emphasizing the need for timely objections and supporting documents for a fair assessment process under the TNVAT Act. No costs were awarded, and connected miscellaneous petitions were closed as a result of the judgment.