2019 (7) TMI 393 - HC - VAT and Sales Tax

Validity of deemed assessment - section 22(2) of TNVAT Act - It is the pointed submission of learned counsel for writ petitioner that invoice wise break up ought to have been given - applicability of the case of M/S. JKM GRAPHICS SOLUTIONS PRIVATE LIMITED VERSUS THE COMMERCIAL TAX OFFICER 2017 (3) TMI 536 - MADRAS HIGH COURT - alternate remedy of statutory appeal - maintainability of petition. HELD THAT - It cannot be gainsaid that JKM Graphics principle has not been adhered to. This is more so as the writ petitioner who had sought time to give documents with regard to the return of goods has not done so. In JKM Graphics principle there have been objections but the Assessing Authority proceeded solely based on annexure II of the selling dealers. Therefore this Court accepts the contention of learned Revenue counsel that JKM Graphics principle is distinguishable on facts and therefore it does not come to the aid or advance the case of the writ petitioner. There is no disputation before this Court that alternate remedy of statutory appeal is available to the writ petitioner against the impugned order and that a statutory appeal shall lie before the jurisdictional Appellate Deputy Commissioner. There is no disputation that such a statutory appeal is under Section 51 of TNVAT Act. This Court is of the considered opinion that this is a fit case to relegate the writ petitioner to the alternate remedy of statutory appeal to the jurisdictional Appellate Deputy Commissioner - this is a fit case to relegate the writ petitioner to the alternate remedy of appeal before jurisdictional Appellate Deputy Commissioner under Section 51 of TNVAT Act - Petition disposed off.

Summary

Issues:
Challenging a Revised Assessment Order under Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) for the Assessment year 2014-2015.

Analysis:
1. The writ petitioner, a dealer under TNVAT Act, challenged the Revised Assessment Order dated 15.05.2019, focusing on the JKM Graphics principle, which emphasizes providing invoice-wise break-up in assessments.

2. The Revenue counsel defended the impugned order, highlighting that only two out of eight heads in the proposal were confirmed, with the rest dropped. The writ petition specifically addressed the issue of 'Sales return not accounted for by customers.'

3. The impugned order detailed the lack of supporting documents for goods returned by customers, citing the JKM Graphics principle to streamline assessment procedures and avoid discrepancies, emphasizing the need for conclusive documentary evidence.

4. The Court analyzed the JKM Graphics principle, noting that the writ petitioner failed to provide necessary documents despite seeking time, leading to the decision that the principle was not applicable in this case due to the lack of evidence.

5. Acknowledging the availability of a statutory appeal under Section 51 of TNVAT Act, the Court emphasized the importance of exhausting alternate remedies in tax-related cases, citing the Satyawati Tandon and K.C.Mathew cases as precedents for strict application of the rule of alternate remedy.

6. Ultimately, the Court deemed it appropriate to relegate the writ petitioner to the statutory appeal process before the Appellate Deputy Commissioner, emphasizing that the Appellate Authority would address the invoice-wise break-up issue, and allowing for condonation of delay under Section 14 of the Limitation Act if necessary. The writ petition was disposed of with these observations, with no costs incurred.