2021 (1) TMI 136 - HC - VAT and Sales Tax

Rejection of rectification application - additional time even after completion of assessment - petitioner prayed for a period of three months in the Section 84 applications to file the declaration forms - Section 84 of Tamil Nadu Value Added Tax Act, 2006 - HELD THAT - The conclusion of the authority to the effect that more than sufficient time has been granted to the petitioner to file the Forms and thus the request for additional time is not liable to be granted, is correct. The learned counsel for the petitioner would submit even at this juncture that the requisite forms are unavailable and thus I find no infirmity in the conclusion of the Officer to the fact that additional time is not liable to be granted. The impugned order to this extent, is confirmed. However, the alternate prayer raised by the petitioner has been omitted to be considered though noted expressly in the impugned order. To this extent the impugned order is incomplete. The petitioner will thus appear before the Assessing officer on Friday the 4th of December, 2020 at 10.30 a.m. and put forth its argument in regard to the alternate prayer. No further notice need be issued in this regard. After hearing the petitioner, orders shall be passed on the alternate prayer raised, within a period of two weeks from date of personal hearing i.e. on or before 18.12.2020. Petition disposed off.

Summary

Issues:
Challenges to assessment orders and rectification orders under the Tamil Nadu Value Added Tax Act, 2006.

Analysis:
The writ petitions challenged assessment orders dated between 2014-2018 and rectification orders rejecting applications under Section 84 of the Act. The petitioner sought rectification based on two grounds. Firstly, relying on a circular allowing time for filing 'C' Form declarations after assessment if a higher tax rate was imposed. The petitioner requested three months to file the declaration forms. Secondly, the petitioner argued for a lower tax rate applicable to capital goods, citing sales of motors to buyers engaged in manufacturing boilers and textile machinery. The petitioner referenced decisions from the Madras and Gujarat High Courts to support the claim for a 5% tax rate without declaration forms.

The impugned orders were issued on the same day as the rectification applications. The assessing officer considered only the request for additional time to file declaration forms, rejecting it due to the lapse of time since assessment completion. The officer deemed the application not entertainable as final assessment was done, and the dealers had not filed an appeal or paid the taxes. The officer did not address the alternate prayer for a lower tax rate without declaration forms.

The court upheld the officer's decision on denying additional time to file forms due to unavailability. However, the court noted the omission of considering the alternate prayer for a lower tax rate without forms. The court directed the petitioner to appear before the officer to argue the alternate prayer and ordered a decision within two weeks from the date of the hearing.

The writ petitions were disposed of according to the court's directions, with connected miscellaneous petitions closed and no costs awarded.