2020 (9) TMI 934 - HC - VAT and Sales Tax

Validity of assessment proceedings - time limitation - non- consideration of F-Forms - period April, 2015 to February, 2016 - HELD THAT - The impugned Assessment Order dt.11.03.2020 passed by the 1st respondent is set aside; the matter is remitted back to the 1st respondent for fresh consideration; the 1st respondent shall consider the F-Forms which have also been filed by the petitioner before him; the petitioner is entitled to make submissions on the aspect of bar of limitation of the assessment proceedings for the period April, 2015 to February, 2016 invoking Sub- Rule (5A) of Rule 14A of the Central Sales Tax (Telangana) Rules, 1957; the 1st respondent shall also provide a personal hearing to the petitioner; and then pass a reasoned order in accordance with law and communicate it to the petitioner. Petition allowed by way of remand.

Summary

Issues:
1. Assessment order assailed by the petitioner.
2. Non-consideration of material submitted by the petitioner.
3. Bar of limitation for assessment proceedings.

Analysis:
1. The petitioner challenged the Assessment Order passed by the 1st respondent, contending that certain deductions and exemptions claimed were not supported by documentary evidence. The petitioner submitted various forms and explanations, including C-Forms and H-Forms, to justify the transactions. However, the impugned order did not address all the materials submitted by the petitioner, leading to a lack of consideration for the job work turnover supported by F-Forms.

2. The non-consideration of the F-Forms by the 1st respondent was highlighted by the petitioner's counsel as a crucial flaw in the assessment process. Even the Special Counsel for Commercial Taxes representing the respondents acknowledged that the F-Forms related to the turnover claimed for inter-State job work transactions were not factored into the impugned order. Consequently, it was suggested that the matter be sent back to the 1st respondent for a fresh review of the material provided by the petitioner.

3. Additionally, the issue of the bar of limitation for the assessment proceedings was raised, citing Sub-Rule (5A) of Rule 14A of the Central Sales Tax (Telangana) Rules, 1957, which sets a limitation of four years from the date of filing the return. The petitioner's entitlement to make submissions on this aspect was recognized, emphasizing the need for the 1st respondent to provide a personal hearing to the petitioner before passing a reasoned order in compliance with the law.

In conclusion, the High Court allowed the Writ Petition, setting aside the impugned Assessment Order and remitting the matter back to the 1st respondent for a fresh review. The directive included the consideration of F-Forms submitted by the petitioner, a personal hearing for the petitioner, and a reasoned order in accordance with the law. The judgment aimed to address the shortcomings in the assessment process and ensure a fair and comprehensive evaluation of the petitioner's submissions.