2021 (7) TMI 165 - HC - VAT and Sales Tax

Validity of deemed assessment order - assessment of total and taxable turnover - grievance of the petitioner is that without considering the petitioner's explanation, the respondent has confirmed the proposal vide proceedings - HELD THAT - The impugned notice and the detailed representation of the petitioner dated 08.02.2021 would reveal that the original assessment order was passed by the respondent, by accepting the total and taxable turnover of ₹ 9,86,723/-, for the assessment year 2014-2015. Subsequently, based on the departmental web report, it was ascertained that the petitioner made purchases to a turnover of ₹ 26,54,345/- as per annexure II of the selling dealers and ₹ 10,79,396/- was shown as purchase turnover, thereby the respondent proposed to assess the total /taxable turnover under Section 27(1) (a) of the TNVAt Act, along with levy of penalty under Section 27(3) (c)of the TNVAT Act. Without adverting to the merits of the case, the respondent is directed to consider the petitioner's representation dated 08.02.2021 and pass appropriate orders, after affording an opportunity of personal hearing to the petitioner, within a period of twelve weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues:
1. Representation for assessment order consideration under TNVAT Act.
2. Alleged discrepancy in turnover assessment and penalty imposition.
3. Failure to rectify errors despite detailed explanations by the petitioner.
4. Need for judicial intervention to ensure proper consideration of representation.

Analysis:
1. The petitioner filed a Writ Petition seeking direction to the respondent to consider her representation dated 08.02.2021 regarding the assessment order under the TNVAT Act. The petitioner, an assessee with a specific TIN number, contested the assessment made by the respondent for the assessment year 2014-2015.

2. The petitioner claimed that despite explaining the discrepancy in reported turnover and actual sales, the respondent confirmed the proposal to revise the assessment based on departmental reports. The respondent proposed to assess the total and taxable turnover under specific sections of the TNVAT Act and levy penalties accordingly. The petitioner emphasized the need for a fair consideration of her explanation.

3. The petitioner's grievance stemmed from the respondent's failure to rectify the apparent error in the assessment despite detailed representations and explanations provided by the petitioner. The respondent, through the Special Government Pleader, defended the assessment process, citing verification procedures and cross-verification reports as the basis for the impugned notice.

4. Upon careful examination of the facts presented, the Court directed the respondent to reconsider the petitioner's representation dated 08.02.2021. The Court emphasized the importance of affording the petitioner an opportunity for a personal hearing before passing any orders. The Court refrained from delving into the merits of the case but stressed the necessity for proper consideration and timely resolution, disposing of the Writ Petition without imposing any costs.