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2020 (4) TMI 143 - HC - VAT and Sales TaxValidity of assessment order - mismatch of transactions as per the returns of the petitioner when compared with the returns of the selling dealers - TNVAT Act - The issue on merits, prima facie, stands covered by a decision of this Court in M/S. JKM GRAPHICS SOLUTIONS PRIVATE LIMITED VERSUS THE COMMERCIAL TAX OFFICER 2017 (3) TMI 536 - MADRAS HIGH COURT issued by the Special Commissioner, Commercial Taxes instructing the Assessing Officers to keep all issues of mismatch in abeyance till the constitution of a proper internal mechanism within the Commercial Taxes Department to address such matters. The impugned orders are set aside and the Assessing Authority is directed to take up the assessments of two periods, viz, 2014-15 and 2015-16 to be re-done de novo in line with Circular No. 3 of 2019 dated 18.01.2019 issued by the Special Commissioner after issuance of notice to the petitioner and affording an opportunity of personal hearing - petition disposed off.
Issues involved: Impugned assessments under the Tamil Nadu Value Added Tax Act, 2006 for the periods 2014-15 and 2015-16; Mismatch of transactions between petitioner's returns and selling dealers' returns; Lack of personal hearing before passing impugned orders; Proposal of penalty without specific mention in pre-assessment notices; Applicability of a previous court decision and a circular on mismatch issues.
The High Court of Madras addressed the issue of impugned assessments under the Tamil Nadu Value Added Tax Act, 2006 for the periods 2014-15 and 2015-16, focusing on the mismatch of transactions between the petitioner's returns and the selling dealers' returns. The court noted that although the Officer claimed no objections were filed to the pre-assessment proposals, a reply dated 25.11.2019 existed on record. The petitioner requested time to produce particulars, but the matters were not re-posted for a hearing, and the impugned orders were passed without granting a personal hearing. Additionally, the pre-assessment notices did not specifically propose a penalty, yet the impugned orders imposed penalties. Regarding the issue on merits, the court found it prima facie covered by a previous decision in J.K.M. Graphics Solutions Private Limited V. Commercial Tax Officer ((2017) 99 VST 343) and Circular No. 3 of 2019 dated 18.01.2019 issued by the Special Commissioner, Commercial Taxes. This circular instructed Assessing Officers to suspend all mismatch issues until a proper internal mechanism was established within the Commercial Taxes Department to address such matters. In light of the discussion, the court set aside the impugned orders and directed the Assessing Authority to re-do the assessments for the periods 2014-15 and 2015-16 in accordance with Circular No. 3 of 2019 after providing notice to the petitioner and an opportunity for a personal hearing. Consequently, the High Court disposed of the Writ Petitions, without imposing any costs, and closed the Miscellaneous Petitions related to the case. The judgment emphasized the importance of following due process, providing opportunities for personal hearings, and considering relevant legal precedents and circulars in tax assessment matters.
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