2019 (8) TMI 824 - HC - VAT and Sales Tax

Deemed assessment - Section 22(2) of TNVAT Act - defects in the monthly returns - Form X - filing of appeal in prescribed form u/s Section 51(2) of TNVAT Act - HELD THAT - A perusal of the prescribed form reveals that an appellant has to set out the grounds of appeal. It is submitted that the only ground of appeal that can be pointed out is that the respondent has not given reasons as to why, the objections/reply of the writ petitioner dealer has not been accepted. It is pointed out that grounds can be raised only if the respondent articulates in the order reasons for not accepting the reply/objections of the writ petitioner. It follows as a natural sequitur that if this is the only ground raised before the appellate authority, the appellate authority will also be left with the inevitable option/Hobson's choice of remitting the matter back to the respondent with a direction to redo the revised assessment adverting to the writ petitioner's objections and setting out the reasons as to how and why the reply/objections of the writ petitioner are not accepted. This would only delay the entire process qua revised assessment. The impugned orders are set aside on the sole ground that it does not advert to the objections and give reasons for not accepting the writ petitioner's reply to the revisional notice. In other words, it is made clear that this Court is not expressing any view or opinion on the merits of the matters - respondent shall pass the revised assessment orders afresh adverting to writ petitioner's reply/objections to revisional notices and giving reasons for not accepting the reply/objections of the writ petitioner - petition allowed by way of remand.

Summary

Issues Involved:
Challenges to revised Assessment Orders under Tamil Nadu Value Added Tax Act, 2006 for different Assessment Years.

Analysis:
The judgment pertains to five writ petitions challenging revised Assessment Orders under the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) for different Assessment Years. The court noted that all five petitions arose from a common factual matrix but differed in the Assessment Years. The impugned orders, dated 17.06.2019, were challenged by the writ petitioner, a dealer in Hosiery garments under the TNVAT Act. The respondent issued revisional notices citing defects in the monthly returns filed by the petitioner and sought objections. The petitioner submitted detailed objections, but the impugned orders were passed without addressing these objections adequately.

The main contention raised by the petitioner was that their detailed objections were summarily dismissed in the impugned orders without proper reasoning. The court observed that the respondent did not provide reasons for rejecting the objections in the orders. The Revenue Counsel argued that the objections were verbose and not relevant to the revisional notices. The court refrained from expressing an opinion on this issue but highlighted the statutory appeal process under Section 51 of the TNVAT Act, emphasizing the need for setting out grounds of appeal based on reasons provided by the respondent.

In its final order, the court set aside the impugned orders solely on the ground of inadequate consideration of the objections. The court clarified that it was not expressing any opinion on the merits of the matters. The court directed the respondent to pass fresh revised assessment orders, considering the objections already filed by the petitioner and providing reasons for not accepting them. This directive aimed to expedite the assessment process while ensuring compliance with the statutory requirement of giving the petitioner a reasonable opportunity to show cause against the impugned orders. The respondent was given eight weeks to complete this process, and the fresh orders were to be communicated to the petitioner in accordance with the TNVAT Act rules.

In conclusion, all five writ petitions were disposed of with the above directions, and no costs were awarded. The connected miscellaneous petitions were closed accordingly.