2020 (6) TMI 221 - HC - VAT and Sales Tax

Mistake in original assessment - It is claimed that the difference in the rate of tax has now been claimed in the order impugned before this Court - HELD THAT - Since only a self assessment has been made and since the books of accounts have not been verified till this date, the order now impugned is set aside and a direction is issued to the petitioner to produce the books of accounts on or before 19.06.2020 for verification by the respondent. The respondent may then verify the entries in Part -B and Part-C in Form -WW. If the respondent requires any clarification, necessary notice may be issued to the petitioner and the petitioner is at liberty to clarify either by themselves or through their Auditor. At any rate, it will be in the interest of both the petitioner and the respondent that the assessment is completed as expeditiously as possible. Petition disposed off.

Summary

Issues:
Assessment under Tamil Nadu Value Added Tax Act for the Assessment year 2014-2015 based on self-assessment procedure; Discrepancy in the turnover figures reported in Form-WW by the petitioner's Auditor; Impugned order demanding payment of tax difference without providing reasons; Request for physical verification of books of accounts by the respondent.

Analysis:
The petitioner, engaged in food processing and catering services, reported a total taxable turnover for the assessment year 2014-2015. They submitted monthly returns under self-assessment, claiming that the respondent did not physically verify their books of accounts. As per Section 63-A of the TNVAT Act, 2006, dealers with turnover exceeding Rs. One crore must file an Audit Report in Form-WW. The petitioner, relying on the Auditor's report, submitted Form-WW, which revealed a discrepancy in turnover figures between Part-C and Part-B, leading to different tax rates being applied.

The petitioner and their Auditor explained the error in Form-WW, attributing it to inadvertence. However, the impugned order demanded payment of the tax difference without providing any reasons, which was challenged by the petitioner's counsel for lack of disclosure. The court noted that the subjective satisfaction of the Assessment Officer cannot be upheld without a counter filed.

In response, the petitioner offered to produce their books of accounts for physical verification by the respondent to determine the correct allocation of turnover between Part-C and Part-B in Form-WW. Acknowledging the need for expeditious assessment, the court set aside the impugned order and directed the petitioner to submit the books of accounts by a specified date for verification. Failure to comply would result in the revival of the impugned order without further notice, emphasizing the importance of timely cooperation between the petitioner and the respondent for a fair assessment process.

Conclusively, the writ petition was disposed of with no costs imposed, emphasizing the need for prompt submission of books of accounts to facilitate a thorough assessment process.