2019 (8) TMI 1095 - HC - VAT and Sales Tax

Validity of revised assessment order - section 16 of TNGST Act - suppression of facts - stock reconciliation - HELD THAT - The respondent had earlier sent a communication dated 27.01.2016 with certain enclosures and to be noted this communication is also post aforesaid earlier order of this Court. Earlier order of this Court is cited as No.2 in the said communication. Said communication mentions about certain enclosures but as already mentioned supra records of the Department are before this Court today and on verification it comes to light that the stock reconciliation statement and more importantly stock statement taken at the time of inspection does not form part of the enclosures. Petitioner on instructions very fairly submits that with regard to suppression aspect i.e. 67, 99, 404/- writ petitioner would avail statutory remedy of appeal by approaching the jurisdictional Appellate Deputy Commissioner under Section 51 of TNVAT Act - With regard to stock reconciliation aspect of little over 55.53 lakhs matter is remitted back to the respondent with a direction to furnish to the writ petitioner the stock statement made at the time of inspection as well as stock reconciliation statement and redo that part of the assessment alone. Petition disposed off.

Summary

Issues:
1. Challenge to the order dated 29.05.2019 under Section 16 of TNGST Act.
2. Revised assessment for Assessment Year 2006-07.
3. Two aspects of the revised assessment: suppression and stock reconciliation.
4. Request for stock details by the writ petitioner.
5. Consideration of liability amounts in the impugned order.
6. Statutory remedy of appeal under Section 51 of TNVAT Act.
7. Directions for the stock reconciliation aspect.

Analysis:

The judgment before the Madras High Court pertains to a challenge against an order dated 29.05.2019 under Section 16 of the Tamil Nadu General Sales Tax Act, 1959. The main issue revolves around a revised assessment for the Assessment Year 2006-07, which includes two key aspects: suppression and stock reconciliation. The petitioner had previously sought stock details through communications to the Department, emphasizing the importance of these details in the assessment process.

Regarding the liability amounts fixed in the impugned order, the court noted that the suppression aspect held a liability of ?67,99,404, while the stock reconciliation aspect amounted to ?55,53,889. The petitioner expressed intent to appeal the suppression aspect under Section 51 of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act), acknowledging the need to follow the statutory appeal process through the Appellate Deputy Commissioner.

In light of the stock reconciliation aspect, the court directed the respondent to provide the petitioner with the stock statement from the inspection and the stock reconciliation statement for a reevaluation of this specific part of the assessment. The judgment highlighted the importance of adhering to the procedures outlined in Section 51 of the TNVAT Act for statutory appeals, including pre-deposit requirements and timeframes.

Furthermore, the judgment allowed the petitioner the option to seek condonation of delay and exclusion of time spent in the writ petition under Section 14 of the Limitation Act. Any such requests would be evaluated by the Appellate Deputy Commissioner during the appeal process. Ultimately, the writ petition was disposed of with the specified directions, emphasizing the petitioner's right to pursue statutory remedies and the need for compliance with relevant legal provisions.