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2020 (8) TMI 289 - HC - VAT and Sales TaxValidity of assessment order - deemed assessment - principles of natural justice - time limitation - HELD THAT - Respondent would defend the impugned order stating that the present impugned proceedings had been initiated only pursuant to the order of this Court and would thus survive, particularly since, according to her, there had been no challenge on the aspect of limitation at the first instance. The second limb of the submission is factually incorrect, where the petitioner has specifically raised the bar of limitation - Fairly, she does not dispute the legal position that in terms of Section 9(2) of the CST Act, the provisions of TNVAT Act would apply in matter of assessments relating to CST as well. Thus, 'assessment' in Section 9(2) includes reference to a deemed assessment and the timelines set out for the bar of limitation under TNVAT Act would apply with equal force in matters of CST. Petition allowed.
Issues:
Challenge to an order of assessment under the Central Sales Tax Act, 1956 (CST Act) for the period 2011-12, violation of principles of natural justice, bar of statutory limitation. Analysis: The petitioner received a pre-assessment notice dated 26.02.2019 leading to an order dated 26.04.2019, which was challenged in W.P.No.17678 of 2019 on grounds of natural justice violation and statutory limitation bar. A learned single Judge set aside the assessment on 27.06.2019 due to lack of opportunity under Section 22(4) of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act). The Assessing Authority re-initiated proceedings by notice dated 23.07.2019. The petitioner argued the assessment for 2011-12 should have been deemed completed by 30.06.2018, invoking the bar of limitation. Ms. Madhiri defended the impugned order, contending it was initiated post the court order and survived, as no limitation challenge was raised initially. However, the petitioner had raised the limitation bar in the earlier affidavit. It was acknowledged that Section 9(2) of the CST Act mandates TNVAT Act provisions for CST assessments. The term 'assessment' in Section 9(2) includes deemed assessment, and TNVAT Act's limitation timelines apply to CST matters. The judgment allowed the Writ Petition, quashing the impugned order, with no costs. The decision was based on the application of TNVAT Act's limitation provisions to CST assessments under Section 9(2) of the CST Act, emphasizing the importance of affording reasonable opportunities and complying with statutory timelines in assessment proceedings.
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